Correlation Between ICC Holdings and Ryde
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Ryde 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 Ryde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Ryde Group, you can compare the effects of market volatilities on ICC Holdings and Ryde 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 Ryde. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Ryde.
Diversification Opportunities for ICC Holdings and Ryde
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICC and Ryde is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Ryde Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryde Group 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 Ryde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryde Group has no effect on the direction of ICC Holdings i.e., ICC Holdings and Ryde go up and down completely randomly.
Pair Corralation between ICC Holdings and Ryde
Given the investment horizon of 90 days ICC Holdings is expected to generate 0.07 times more return on investment than Ryde. However, ICC Holdings is 13.93 times less risky than Ryde. It trades about 0.08 of its potential returns per unit of risk. Ryde Group is currently generating about -0.31 per unit of risk. If you would invest 2,299 in ICC Holdings on August 28, 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 | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
ICC Holdings vs. Ryde Group
Performance |
| Timeline |
| ICC Holdings |
| Ryde Group |
ICC Holdings and Ryde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Ryde
The main advantage of trading using opposite ICC Holdings and Ryde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Ryde 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 Ryde will offset losses from the drop in Ryde's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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