Correlation Between ICC Holdings and Mamas Creations
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Mamas Creations 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 Mamas Creations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Mamas Creations, you can compare the effects of market volatilities on ICC Holdings and Mamas Creations 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 Mamas Creations. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Mamas Creations.
Diversification Opportunities for ICC Holdings and Mamas Creations
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICC and Mamas is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Mamas Creations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mamas Creations 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 Mamas Creations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mamas Creations has no effect on the direction of ICC Holdings i.e., ICC Holdings and Mamas Creations go up and down completely randomly.
Pair Corralation between ICC Holdings and Mamas Creations
Given the investment horizon of 90 days ICC Holdings is expected to generate 9.21 times less return on investment than Mamas Creations. But when comparing it to its historical volatility, ICC Holdings is 5.33 times less risky than Mamas Creations. It trades about 0.06 of its potential returns per unit of risk. Mamas Creations is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Mamas Creations on September 12, 2024 and sell it today you would earn a total of 137.00 from holding Mamas Creations or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.5% |
| Values | Daily Returns |
ICC Holdings vs. Mamas Creations
Performance |
| Timeline |
| ICC Holdings |
| Mamas Creations |
ICC Holdings and Mamas Creations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Mamas Creations
The main advantage of trading using opposite ICC Holdings and Mamas Creations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Mamas Creations 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 Mamas Creations will offset losses from the drop in Mamas Creations' long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| Mamas Creations vs. SunOpta | Mamas Creations vs. Patterson UTI Energy | Mamas Creations vs. AMCON Distributing | Mamas Creations vs. Tyson Foods |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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