Correlation Between ICOA and GreenBank Capital
Can any of the company-specific risk be diversified away by investing in both ICOA and GreenBank 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 ICOA and GreenBank Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICOA Inc and GreenBank Capital, you can compare the effects of market volatilities on ICOA and GreenBank 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 ICOA with a short position of GreenBank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICOA and GreenBank Capital.
Diversification Opportunities for ICOA and GreenBank Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICOA and GreenBank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICOA Inc and GreenBank Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenBank Capital and ICOA 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 ICOA Inc are associated (or correlated) with GreenBank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenBank Capital has no effect on the direction of ICOA i.e., ICOA and GreenBank Capital go up and down completely randomly.
Pair Corralation between ICOA and GreenBank Capital
Given the investment horizon of 90 days ICOA is expected to generate 5.16 times less return on investment than GreenBank Capital. But when comparing it to its historical volatility, ICOA Inc is 3.21 times less risky than GreenBank Capital. It trades about 0.07 of its potential returns per unit of risk. GreenBank Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 11.00 in GreenBank Capital on August 29, 2024 and sell it today you would lose (10.13) from holding GreenBank Capital or give up 92.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICOA Inc vs. GreenBank Capital
Performance |
| Timeline |
| ICOA Inc |
| GreenBank Capital |
ICOA and GreenBank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICOA and GreenBank Capital
The main advantage of trading using opposite ICOA and GreenBank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICOA position performs unexpectedly, GreenBank 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 GreenBank Capital will offset losses from the drop in GreenBank Capital's long position.| ICOA vs. SPENN Technology AS | ICOA vs. OFX Group Ltd | ICOA vs. APAC Resources Limited | ICOA vs. Cypherpunk Holdings |
| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |