Correlation Between Icon Media and Huaizhong Health
Can any of the company-specific risk be diversified away by investing in both Icon Media and Huaizhong Health 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 Icon Media and Huaizhong Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Media Holdings and Huaizhong Health Group, you can compare the effects of market volatilities on Icon Media and Huaizhong Health 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 Icon Media with a short position of Huaizhong Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Media and Huaizhong Health.
Diversification Opportunities for Icon Media and Huaizhong Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Icon and Huaizhong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Icon Media Holdings and Huaizhong Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaizhong Health and Icon Media 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 Icon Media Holdings are associated (or correlated) with Huaizhong Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaizhong Health has no effect on the direction of Icon Media i.e., Icon Media and Huaizhong Health go up and down completely randomly.
Pair Corralation between Icon Media and Huaizhong Health
If you would invest 0.04 in Icon Media Holdings on August 31, 2024 and sell it today you would lose (0.01) from holding Icon Media Holdings or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Media Holdings vs. Huaizhong Health Group
Performance |
| Timeline |
| Icon Media Holdings |
| Huaizhong Health |
Icon Media and Huaizhong Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Media and Huaizhong Health
The main advantage of trading using opposite Icon Media and Huaizhong Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Media position performs unexpectedly, Huaizhong Health 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 Huaizhong Health will offset losses from the drop in Huaizhong Health's long position.| Icon Media vs. Eline Entertainment Group | Icon Media vs. Green Leaf Innovations | Icon Media vs. Plandai Biotech | Icon Media vs. All American Gld |
| Huaizhong Health vs. American Leisure Holdings | Huaizhong Health vs. Supurva Healthcare Group | Huaizhong Health vs. China Health Management | Huaizhong Health vs. Embrace Change Acquisition |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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