Correlation Between Icon Media and Indo Global
Can any of the company-specific risk be diversified away by investing in both Icon Media and Indo Global 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 Indo Global 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 Indo Global Exchange, you can compare the effects of market volatilities on Icon Media and Indo Global 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 Indo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Media and Indo Global.
Diversification Opportunities for Icon Media and Indo Global
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Indo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Icon Media Holdings and Indo Global Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Global Exchange 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 Indo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Global Exchange has no effect on the direction of Icon Media i.e., Icon Media and Indo Global go up and down completely randomly.
Pair Corralation between Icon Media and Indo Global
Given the investment horizon of 90 days Icon Media Holdings is expected to generate 3.5 times more return on investment than Indo Global. However, Icon Media is 3.5 times more volatile than Indo Global Exchange. It trades about 0.18 of its potential returns per unit of risk. Indo Global Exchange is currently generating about 0.02 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Media Holdings vs. Indo Global Exchange
Performance |
| Timeline |
| Icon Media Holdings |
| Indo Global Exchange |
Icon Media and Indo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Media and Indo Global
The main advantage of trading using opposite Icon Media and Indo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Media position performs unexpectedly, Indo Global 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 Indo Global will offset losses from the drop in Indo Global'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 |
| Indo Global vs. Cann American Corp | Indo Global vs. GelStat Corp | Indo Global vs. Green Cures Botanical | Indo Global vs. For The Earth |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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