Correlation Between ICC Holdings and Euronav NV
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Euronav NV at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ICC Holdings and Euronav NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Euronav NV, you can compare the effects of market volatilities on ICC Holdings and Euronav NV and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ICC Holdings with a short position of Euronav NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Euronav NV.
Diversification Opportunities for ICC Holdings and Euronav NV
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICC and Euronav is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Euronav NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronav NV and ICC Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ICC Holdings are associated (or correlated) with Euronav NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronav NV has no effect on the direction of ICC Holdings i.e., ICC Holdings and Euronav NV go up and down completely randomly.
Pair Corralation between ICC Holdings and Euronav NV
Given the investment horizon of 90 days ICC Holdings is expected to generate 0.29 times more return on investment than Euronav NV. However, ICC Holdings is 3.51 times less risky than Euronav NV. It trades about 0.04 of its potential returns per unit of risk. Euronav NV is currently generating about -0.39 per unit of risk. If you would invest 2,300 in ICC Holdings on September 5, 2024 and sell it today you would earn a total of 11.00 from holding ICC Holdings or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ICC Holdings vs. Euronav NV
Performance |
| Timeline |
| ICC Holdings |
| Euronav NV |
ICC Holdings and Euronav NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Euronav NV
The main advantage of trading using opposite ICC Holdings and Euronav NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Euronav NV can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Euronav NV will offset losses from the drop in Euronav NV's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| Euronav NV vs. Beyond Meat | Euronav NV vs. Lifevantage | Euronav NV vs. Commonwealth Bank of | Euronav NV vs. KeyCorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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