Correlation Between ICON Project and BLK
Can any of the company-specific risk be diversified away by investing in both ICON Project and BLK 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 Project and BLK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and BLK, you can compare the effects of market volatilities on ICON Project and BLK 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 Project with a short position of BLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and BLK.
Diversification Opportunities for ICON Project and BLK
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ICON and BLK is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and BLK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLK and ICON Project 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 Project are associated (or correlated) with BLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLK has no effect on the direction of ICON Project i.e., ICON Project and BLK go up and down completely randomly.
Pair Corralation between ICON Project and BLK
Assuming the 90 days trading horizon ICON Project is expected to under-perform the BLK. In addition to that, ICON Project is 3.83 times more volatile than BLK. It trades about -0.25 of its total potential returns per unit of risk. BLK is currently generating about -0.18 per unit of volatility. If you would invest 3.13 in BLK on November 18, 2024 and sell it today you would lose (0.20) from holding BLK or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICON Project vs. BLK
Performance |
| Timeline |
| ICON Project |
| BLK |
ICON Project and BLK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICON Project and BLK
The main advantage of trading using opposite ICON Project and BLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, BLK 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 BLK will offset losses from the drop in BLK's long position.| ICON Project vs. Staked Ether | ICON Project vs. Phala Network | ICON Project vs. EigenLayer | ICON Project vs. EOSDAC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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