Correlation Between Icon Media and Cgrowth Capital
Can any of the company-specific risk be diversified away by investing in both Icon Media and Cgrowth Capital 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 Cgrowth Capital 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 Cgrowth Capital, you can compare the effects of market volatilities on Icon Media and Cgrowth Capital 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 Cgrowth Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Media and Cgrowth Capital.
Diversification Opportunities for Icon Media and Cgrowth Capital
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Cgrowth is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Icon Media Holdings and Cgrowth Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cgrowth Capital 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 Cgrowth Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cgrowth Capital has no effect on the direction of Icon Media i.e., Icon Media and Cgrowth Capital go up and down completely randomly.
Pair Corralation between Icon Media and Cgrowth Capital
Given the investment horizon of 90 days Icon Media Holdings is expected to generate 1.18 times more return on investment than Cgrowth Capital. However, Icon Media is 1.18 times more volatile than Cgrowth Capital. It trades about 0.08 of its potential returns per unit of risk. Cgrowth Capital is currently generating about 0.05 per unit of risk. If you would invest 0.05 in Icon Media Holdings on November 27, 2024 and sell it today you would lose (0.03) from holding Icon Media Holdings or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Media Holdings vs. Cgrowth Capital
Performance |
| Timeline |
| Icon Media Holdings |
| Cgrowth Capital |
Icon Media and Cgrowth Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Media and Cgrowth Capital
The main advantage of trading using opposite Icon Media and Cgrowth Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Media position performs unexpectedly, Cgrowth Capital 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 Cgrowth Capital will offset losses from the drop in Cgrowth Capital'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 |
| Cgrowth Capital vs. Sound Energy plc | Cgrowth Capital vs. Energy Revenue Amer | Cgrowth Capital vs. Prairie Provident Resources | Cgrowth Capital vs. MMEX Resources Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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