Correlation Between ICC Holdings and VERIZON
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By analyzing existing cross correlation between ICC Holdings and VERIZON MUNICATIONS INC, you can compare the effects of market volatilities on ICC Holdings and VERIZON 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 VERIZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and VERIZON.
Diversification Opportunities for ICC Holdings and VERIZON
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICC and VERIZON is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and VERIZON MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERIZON MUNICATIONS INC 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 VERIZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERIZON MUNICATIONS INC has no effect on the direction of ICC Holdings i.e., ICC Holdings and VERIZON go up and down completely randomly.
Pair Corralation between ICC Holdings and VERIZON
Given the investment horizon of 90 days ICC Holdings is expected to generate 1.65 times less return on investment than VERIZON. But when comparing it to its historical volatility, ICC Holdings is 1.15 times less risky than VERIZON. It trades about 0.03 of its potential returns per unit of risk. VERIZON MUNICATIONS INC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,151 in VERIZON MUNICATIONS INC on August 24, 2024 and sell it today you would earn a total of 34.00 from holding VERIZON MUNICATIONS INC or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
ICC Holdings vs. VERIZON MUNICATIONS INC
Performance |
| Timeline |
| ICC Holdings |
| VERIZON MUNICATIONS INC |
ICC Holdings and VERIZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and VERIZON
The main advantage of trading using opposite ICC Holdings and VERIZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, VERIZON 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 VERIZON will offset losses from the drop in VERIZON's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| VERIZON vs. Park Hotels Resorts | VERIZON vs. The Cheesecake Factory | VERIZON vs. Datadog | VERIZON vs. Sweetgreen |
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 Stocks Directory module to find actively traded stocks across global markets.
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