Correlation Between Icon Media and First Colombia
Can any of the company-specific risk be diversified away by investing in both Icon Media and First Colombia 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 First Colombia 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 First Colombia Gold, you can compare the effects of market volatilities on Icon Media and First Colombia 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 First Colombia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Media and First Colombia.
Diversification Opportunities for Icon Media and First Colombia
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and First is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Icon Media Holdings and First Colombia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Colombia Gold 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 First Colombia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Colombia Gold has no effect on the direction of Icon Media i.e., Icon Media and First Colombia go up and down completely randomly.
Pair Corralation between Icon Media and First Colombia
If you would invest 0.03 in Icon Media Holdings on January 8, 2025 and sell it today you would earn a total of 0.00 from holding Icon Media Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Icon Media Holdings vs. First Colombia Gold
Performance |
| Timeline |
| Icon Media Holdings |
| First Colombia Gold |
Icon Media and First Colombia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Media and First Colombia
The main advantage of trading using opposite Icon Media and First Colombia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Media position performs unexpectedly, First Colombia 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 First Colombia will offset losses from the drop in First Colombia'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 |
| First Colombia vs. Alpha Wastewater | First Colombia vs. China Health Management | First Colombia vs. Embrace Change Acquisition | First Colombia vs. TransAKT |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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