Correlation Between ICTS International and TOMI Environmental
Can any of the company-specific risk be diversified away by investing in both ICTS International and TOMI Environmental 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 TOMI Environmental 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 TOMI Environmental Solutions, you can compare the effects of market volatilities on ICTS International and TOMI Environmental 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 TOMI Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICTS International and TOMI Environmental.
Diversification Opportunities for ICTS International and TOMI Environmental
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ICTS and TOMI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ICTS International NV and TOMI Environmental Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOMI Environmental 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 TOMI Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOMI Environmental has no effect on the direction of ICTS International i.e., ICTS International and TOMI Environmental go up and down completely randomly.
Pair Corralation between ICTS International and TOMI Environmental
Assuming the 90 days horizon ICTS International NV is expected to generate 1.82 times more return on investment than TOMI Environmental. However, ICTS International is 1.82 times more volatile than TOMI Environmental Solutions. It trades about 0.01 of its potential returns per unit of risk. TOMI Environmental Solutions is currently generating about -0.29 per unit of risk. If you would invest 455.00 in ICTS International NV on September 3, 2024 and sell it today you would lose (5.00) from holding ICTS International NV or give up 1.1% 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. TOMI Environmental Solutions
Performance |
| Timeline |
| ICTS International |
| TOMI Environmental |
ICTS International and TOMI Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICTS International and TOMI Environmental
The main advantage of trading using opposite ICTS International and TOMI Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICTS International position performs unexpectedly, TOMI Environmental 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 TOMI Environmental will offset losses from the drop in TOMI Environmental's long position.| ICTS International vs. TOMI Environmental Solutions | ICTS International vs. SCOR PK | ICTS International vs. HUMANA INC | ICTS International vs. Aquagold International |
| TOMI Environmental vs. Decision Diagnostics | TOMI Environmental vs. Kronos Advanced Technologies | TOMI Environmental vs. GeoVax Labs | TOMI Environmental vs. Creative Realities |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |