Correlation Between ICOA and ProConcept Marketing
Can any of the company-specific risk be diversified away by investing in both ICOA and ProConcept Marketing 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 ProConcept Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICOA Inc and ProConcept Marketing Group, you can compare the effects of market volatilities on ICOA and ProConcept Marketing 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 ProConcept Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICOA and ProConcept Marketing.
Diversification Opportunities for ICOA and ProConcept Marketing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICOA and ProConcept is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICOA Inc and ProConcept Marketing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProConcept Marketing 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 ProConcept Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProConcept Marketing has no effect on the direction of ICOA i.e., ICOA and ProConcept Marketing go up and down completely randomly.
Pair Corralation between ICOA and ProConcept Marketing
Given the investment horizon of 90 days ICOA Inc is expected to generate 1.97 times more return on investment than ProConcept Marketing. However, ICOA is 1.97 times more volatile than ProConcept Marketing Group. It trades about 0.1 of its potential returns per unit of risk. ProConcept Marketing Group is currently generating about 0.01 per unit of risk. If you would invest 0.04 in ICOA Inc on August 26, 2024 and sell it today you would lose (0.03) from holding ICOA Inc or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
ICOA Inc vs. ProConcept Marketing Group
Performance |
| Timeline |
| ICOA Inc |
| ProConcept Marketing |
ICOA and ProConcept Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICOA and ProConcept Marketing
The main advantage of trading using opposite ICOA and ProConcept Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICOA position performs unexpectedly, ProConcept Marketing 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 ProConcept Marketing will offset losses from the drop in ProConcept Marketing's long position.The idea behind ICOA Inc and ProConcept Marketing Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ProConcept Marketing vs. Morgan Stanley | ProConcept Marketing vs. Goldman Sachs Group | ProConcept Marketing vs. Charles Schwab Corp | ProConcept Marketing vs. Interactive Brokers Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |