Correlation Between ICC Holdings and Monument Circle
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Monument Circle 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 Monument Circle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Monument Circle Acquisition, you can compare the effects of market volatilities on ICC Holdings and Monument Circle 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 Monument Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Monument Circle.
Diversification Opportunities for ICC Holdings and Monument Circle
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICC and Monument is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Monument Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Circle Acqu 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 Monument Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Circle Acqu has no effect on the direction of ICC Holdings i.e., ICC Holdings and Monument Circle go up and down completely randomly.
Pair Corralation between ICC Holdings and Monument Circle
If you would invest 1,640 in ICC Holdings on August 31, 2024 and sell it today you would earn a total of 682.00 from holding ICC Holdings or generate 41.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ICC Holdings vs. Monument Circle Acquisition
Performance |
| Timeline |
| ICC Holdings |
| Monument Circle Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ICC Holdings and Monument Circle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Monument Circle
The main advantage of trading using opposite ICC Holdings and Monument Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Monument Circle 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 Monument Circle will offset losses from the drop in Monument Circle's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| Monument Circle vs. Cementos Pacasmayo SAA | Monument Circle vs. Western Copper and | Monument Circle vs. GameStop Corp | Monument Circle vs. Doubledown Interactive Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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