Correlation Between ICC Holdings and Tiptree
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Tiptree 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 Tiptree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Tiptree, you can compare the effects of market volatilities on ICC Holdings and Tiptree 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 Tiptree. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Tiptree.
Diversification Opportunities for ICC Holdings and Tiptree
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICC and Tiptree is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Tiptree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiptree 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 Tiptree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiptree has no effect on the direction of ICC Holdings i.e., ICC Holdings and Tiptree go up and down completely randomly.
Pair Corralation between ICC Holdings and Tiptree
Given the investment horizon of 90 days ICC Holdings is expected to generate 23.93 times more return on investment than Tiptree. However, ICC Holdings is 23.93 times more volatile than Tiptree. It trades about 0.05 of its potential returns per unit of risk. Tiptree is currently generating about 0.06 per unit of risk. If you would invest 1,525 in ICC Holdings on August 24, 2024 and sell it today you would earn a total of 799.00 from holding ICC Holdings or generate 52.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.68% |
| Values | Daily Returns |
ICC Holdings vs. Tiptree
Performance |
| Timeline |
| ICC Holdings |
| Tiptree |
ICC Holdings and Tiptree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Tiptree
The main advantage of trading using opposite ICC Holdings and Tiptree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Tiptree 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 Tiptree will offset losses from the drop in Tiptree'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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