Correlation Between Icecure Medical and ECGI Holdings
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and ECGI Holdings 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 Icecure Medical and ECGI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and ECGI Holdings, you can compare the effects of market volatilities on Icecure Medical and ECGI Holdings 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 Icecure Medical with a short position of ECGI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and ECGI Holdings.
Diversification Opportunities for Icecure Medical and ECGI Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icecure and ECGI is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and ECGI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECGI Holdings and Icecure Medical 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 Icecure Medical are associated (or correlated) with ECGI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECGI Holdings has no effect on the direction of Icecure Medical i.e., Icecure Medical and ECGI Holdings go up and down completely randomly.
Pair Corralation between Icecure Medical and ECGI Holdings
Given the investment horizon of 90 days Icecure Medical is expected to generate 4.46 times less return on investment than ECGI Holdings. But when comparing it to its historical volatility, Icecure Medical is 2.6 times less risky than ECGI Holdings. It trades about 0.04 of its potential returns per unit of risk. ECGI Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.13 in ECGI Holdings on September 1, 2024 and sell it today you would lose (0.02) from holding ECGI Holdings or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. ECGI Holdings
Performance |
| Timeline |
| Icecure Medical |
| ECGI Holdings |
Icecure Medical and ECGI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and ECGI Holdings
The main advantage of trading using opposite Icecure Medical and ECGI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, ECGI Holdings 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 ECGI Holdings will offset losses from the drop in ECGI Holdings' long position.| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
| ECGI Holdings vs. Tandem Diabetes Care | ECGI Holdings vs. Transportadora de Gas | ECGI Holdings vs. Aris Water Solutions | ECGI Holdings vs. Catalent |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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