Correlation Between ICTS International and Blue Line
Can any of the company-specific risk be diversified away by investing in both ICTS International and Blue Line 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 ICTS International and Blue Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICTS International NV and Blue Line Protection, you can compare the effects of market volatilities on ICTS International and Blue Line 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 ICTS International with a short position of Blue Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICTS International and Blue Line.
Diversification Opportunities for ICTS International and Blue Line
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICTS and Blue is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ICTS International NV and Blue Line Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Line Protection and ICTS International 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 ICTS International NV are associated (or correlated) with Blue Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Line Protection has no effect on the direction of ICTS International i.e., ICTS International and Blue Line go up and down completely randomly.
Pair Corralation between ICTS International and Blue Line
Assuming the 90 days horizon ICTS International is expected to generate 2.3 times less return on investment than Blue Line. But when comparing it to its historical volatility, ICTS International NV is 12.71 times less risky than Blue Line. It trades about 0.15 of its potential returns per unit of risk. Blue Line Protection is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5.04 in Blue Line Protection on January 9, 2025 and sell it today you would lose (0.74) from holding Blue Line Protection or give up 14.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICTS International NV vs. Blue Line Protection
Performance |
| Timeline |
| ICTS International |
| Blue Line Protection |
ICTS International and Blue Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICTS International and Blue Line
The main advantage of trading using opposite ICTS International and Blue Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICTS International position performs unexpectedly, Blue Line 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 Blue Line will offset losses from the drop in Blue Line's long position.| ICTS International vs. BIO Key International | ICTS International vs. LogicMark | ICTS International vs. SSC Security Services | ICTS International vs. Senstar Technologies |
| Blue Line vs. BIO Key International | Blue Line vs. LogicMark | Blue Line vs. Knightscope | Blue Line vs. Guardforce AI Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |