Correlation Between Icecure Medical and Item 9
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Item 9 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 Item 9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Item 9 Labs, you can compare the effects of market volatilities on Icecure Medical and Item 9 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 Item 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Item 9.
Diversification Opportunities for Icecure Medical and Item 9
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Icecure and Item is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Item 9 Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Item 9 Labs 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 Item 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Item 9 Labs has no effect on the direction of Icecure Medical i.e., Icecure Medical and Item 9 go up and down completely randomly.
Pair Corralation between Icecure Medical and Item 9
If you would invest 85.00 in Icecure Medical on September 3, 2024 and sell it today you would lose (2.00) from holding Icecure Medical or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. Item 9 Labs
Performance |
| Timeline |
| Icecure Medical |
| Item 9 Labs |
Icecure Medical and Item 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and Item 9
The main advantage of trading using opposite Icecure Medical and Item 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Item 9 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 Item 9 will offset losses from the drop in Item 9's long position.| Icecure Medical vs. Tandem Diabetes Care | Icecure Medical vs. Inspire Medical Systems | Icecure Medical vs. Penumbra | Icecure Medical vs. Insulet |
| Item 9 vs. C21 Investments | Item 9 vs. Delta 9 Cannabis | Item 9 vs. Halo Collective | Item 9 vs. Willow Biosciences |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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