Correlation Between Icecure Medical and THC Biomed
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and THC Biomed 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 THC Biomed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and THC Biomed Intl, you can compare the effects of market volatilities on Icecure Medical and THC Biomed 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 THC Biomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and THC Biomed.
Diversification Opportunities for Icecure Medical and THC Biomed
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icecure and THC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and THC Biomed Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THC Biomed Intl 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 THC Biomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THC Biomed Intl has no effect on the direction of Icecure Medical i.e., Icecure Medical and THC Biomed go up and down completely randomly.
Pair Corralation between Icecure Medical and THC Biomed
Given the investment horizon of 90 days Icecure Medical is expected to under-perform the THC Biomed. But the stock apears to be less risky and, when comparing its historical volatility, Icecure Medical is 7.76 times less risky than THC Biomed. The stock trades about -0.03 of its potential returns per unit of risk. The THC Biomed Intl is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.60 in THC Biomed Intl on September 3, 2024 and sell it today you would lose (1.50) from holding THC Biomed Intl or give up 93.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. THC Biomed Intl
Performance |
| Timeline |
| Icecure Medical |
| THC Biomed Intl |
Icecure Medical and THC Biomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and THC Biomed
The main advantage of trading using opposite Icecure Medical and THC Biomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, THC Biomed 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 THC Biomed will offset losses from the drop in THC Biomed's long position.| Icecure Medical vs. Tandem Diabetes Care | Icecure Medical vs. Inspire Medical Systems | Icecure Medical vs. Penumbra | Icecure Medical vs. Insulet |
| THC Biomed vs. Pmv Pharmaceuticals | THC Biomed vs. MediciNova | THC Biomed vs. Pharvaris BV | THC Biomed vs. PepGen |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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