Correlation Between ICC Holdings and 88023UAH4
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By analyzing existing cross correlation between ICC Holdings and US88023UAH41, you can compare the effects of market volatilities on ICC Holdings and 88023UAH4 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 88023UAH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and 88023UAH4.
Diversification Opportunities for ICC Holdings and 88023UAH4
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICC and 88023UAH4 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and US88023UAH41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US88023UAH41 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 88023UAH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US88023UAH41 has no effect on the direction of ICC Holdings i.e., ICC Holdings and 88023UAH4 go up and down completely randomly.
Pair Corralation between ICC Holdings and 88023UAH4
Given the investment horizon of 90 days ICC Holdings is expected to generate 1.12 times less return on investment than 88023UAH4. But when comparing it to its historical volatility, ICC Holdings is 6.25 times less risky than 88023UAH4. It trades about 0.08 of its potential returns per unit of risk. US88023UAH41 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9,332 in US88023UAH41 on September 12, 2024 and sell it today you would lose (7.00) from holding US88023UAH41 or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICC Holdings vs. US88023UAH41
Performance |
| Timeline |
| ICC Holdings |
| US88023UAH41 |
ICC Holdings and 88023UAH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and 88023UAH4
The main advantage of trading using opposite ICC Holdings and 88023UAH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, 88023UAH4 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 88023UAH4 will offset losses from the drop in 88023UAH4's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| 88023UAH4 vs. Employers Holdings | 88023UAH4 vs. Assurant | 88023UAH4 vs. ICC Holdings | 88023UAH4 vs. Ispire Technology Common |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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