Correlation Between Icon Media and Hop On
Can any of the company-specific risk be diversified away by investing in both Icon Media and Hop On 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 Hop On 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 Hop On Inc, you can compare the effects of market volatilities on Icon Media and Hop On 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 Hop On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Media and Hop On.
Diversification Opportunities for Icon Media and Hop On
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Icon and Hop is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Icon Media Holdings and Hop On Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hop On Inc 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 Hop On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hop On Inc has no effect on the direction of Icon Media i.e., Icon Media and Hop On go up and down completely randomly.
Pair Corralation between Icon Media and Hop On
Given the investment horizon of 90 days Icon Media Holdings is expected to generate 1.33 times more return on investment than Hop On. However, Icon Media is 1.33 times more volatile than Hop On Inc. It trades about 0.18 of its potential returns per unit of risk. Hop On Inc is currently generating about 0.13 per unit of risk. If you would invest 0.02 in Icon Media Holdings on November 3, 2024 and sell it today you would earn a total of 0.01 from holding Icon Media Holdings or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Icon Media Holdings vs. Hop On Inc
Performance |
| Timeline |
| Icon Media Holdings |
| Hop On Inc |
Icon Media and Hop On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Media and Hop On
The main advantage of trading using opposite Icon Media and Hop On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Media position performs unexpectedly, Hop On 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 Hop On will offset losses from the drop in Hop On'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 |
| Hop On vs. Wialan Technologies | Hop On vs. Electronic Systems Technology | Hop On vs. AdvanceTC Limited | Hop On vs. Metalert |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |