Correlation Between ICC Holdings and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Summit Environmental 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 Summit Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Summit Environmental, you can compare the effects of market volatilities on ICC Holdings and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Summit Environmental.
Diversification Opportunities for ICC Holdings and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICC and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of ICC Holdings i.e., ICC Holdings and Summit Environmental go up and down completely randomly.
Pair Corralation between ICC Holdings and Summit Environmental
If you would invest 2,301 in ICC Holdings on August 24, 2024 and sell it today you would earn a total of 6.00 from holding ICC Holdings or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
ICC Holdings vs. Summit Environmental
Performance |
| Timeline |
| ICC Holdings |
| Summit Environmental |
ICC Holdings and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Summit Environmental
The main advantage of trading using opposite ICC Holdings and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| Summit Environmental vs. Ascendant Resources | Summit Environmental vs. Cantex Mine Development | Summit Environmental vs. Amarc Resources | Summit Environmental vs. Sterling Metals 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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