Correlation Between ICC Holdings and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Electrovaya Common 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 Electrovaya Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Electrovaya Common Shares, you can compare the effects of market volatilities on ICC Holdings and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Electrovaya Common.
Diversification Opportunities for ICC Holdings and Electrovaya Common
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ICC and Electrovaya is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of ICC Holdings i.e., ICC Holdings and Electrovaya Common go up and down completely randomly.
Pair Corralation between ICC Holdings and Electrovaya Common
Given the investment horizon of 90 days ICC Holdings is expected to generate 20.69 times more return on investment than Electrovaya Common. However, ICC Holdings is 20.69 times more volatile than Electrovaya Common Shares. It trades about 0.07 of its potential returns per unit of risk. Electrovaya Common Shares is currently generating about 0.0 per unit of risk. If you would invest 1,600 in ICC Holdings on September 12, 2024 and sell it today you would earn a total of 722.00 from holding ICC Holdings or generate 45.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.44% |
| Values | Daily Returns |
ICC Holdings vs. Electrovaya Common Shares
Performance |
| Timeline |
| ICC Holdings |
| Electrovaya Common Shares |
ICC Holdings and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Electrovaya Common
The main advantage of trading using opposite ICC Holdings and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| Electrovaya Common vs. American Hotel Income | Electrovaya Common vs. Dennys Corp | Electrovaya Common vs. Harmony Gold Mining | Electrovaya Common vs. Ark Restaurants Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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