Correlation Between Icelandair Group and ICEX Main
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By analyzing existing cross correlation between Icelandair Group hf and ICEX Main, you can compare the effects of market volatilities on Icelandair Group and ICEX Main 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 Icelandair Group with a short position of ICEX Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icelandair Group and ICEX Main.
Diversification Opportunities for Icelandair Group and ICEX Main
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Icelandair and ICEX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Icelandair Group hf and ICEX Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICEX Main and Icelandair Group 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 Icelandair Group hf are associated (or correlated) with ICEX Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICEX Main has no effect on the direction of Icelandair Group i.e., Icelandair Group and ICEX Main go up and down completely randomly.
Pair Corralation between Icelandair Group and ICEX Main
Assuming the 90 days trading horizon Icelandair Group hf is expected to under-perform the ICEX Main. In addition to that, Icelandair Group is 2.04 times more volatile than ICEX Main. It trades about -0.01 of its total potential returns per unit of risk. ICEX Main is currently generating about 0.01 per unit of volatility. If you would invest 220,198 in ICEX Main on September 13, 2024 and sell it today you would earn a total of 11,294 from holding ICEX Main or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icelandair Group hf vs. ICEX Main
Performance |
| Timeline |
Icelandair Group and ICEX Main Volatility Contrast
Predicted Return Density |
| Returns |
Icelandair Group hf
Pair trading matchups for Icelandair Group
ICEX Main
Pair trading matchups for ICEX Main
Pair Trading with Icelandair Group and ICEX Main
The main advantage of trading using opposite Icelandair Group and ICEX Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icelandair Group position performs unexpectedly, ICEX Main 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 ICEX Main will offset losses from the drop in ICEX Main's long position.| Icelandair Group vs. Icelandic Salmon AS | Icelandair Group vs. lgerin Egill Skallagrmsson | Icelandair Group vs. Fly Play hf | Icelandair Group vs. Oculis Holding AG |
| ICEX Main vs. Alvotech | ICEX Main vs. Icelandair Group hf | ICEX Main vs. slandsbanki hf | ICEX Main vs. Arion banki hf |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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