Correlation Between Indo Global and Icon Media
Can any of the company-specific risk be diversified away by investing in both Indo Global and Icon Media 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 Indo Global and Icon Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Global Exchange and Icon Media Holdings, you can compare the effects of market volatilities on Indo Global and Icon Media 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 Indo Global with a short position of Icon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Global and Icon Media.
Diversification Opportunities for Indo Global and Icon Media
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indo and Icon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Indo Global Exchange and Icon Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Media Holdings and Indo Global 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 Indo Global Exchange are associated (or correlated) with Icon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Media Holdings has no effect on the direction of Indo Global i.e., Indo Global and Icon Media go up and down completely randomly.
Pair Corralation between Indo Global and Icon Media
Given the investment horizon of 90 days Indo Global is expected to generate 27.99 times less return on investment than Icon Media. But when comparing it to its historical volatility, Indo Global Exchange is 3.5 times less risky than Icon Media. It trades about 0.02 of its potential returns per unit of risk. Icon Media Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Icon Media Holdings on November 3, 2024 and sell it today you would earn a total of 0.01 from holding Icon Media Holdings or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Global Exchange vs. Icon Media Holdings
Performance |
| Timeline |
| Indo Global Exchange |
| Icon Media Holdings |
Indo Global and Icon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Global and Icon Media
The main advantage of trading using opposite Indo Global and Icon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Global position performs unexpectedly, Icon Media 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 Icon Media will offset losses from the drop in Icon Media's long position.| Indo Global vs. Cann American Corp | Indo Global vs. GelStat Corp | Indo Global vs. Green Cures Botanical | Indo Global vs. For The Earth |
| Icon Media vs. Eline Entertainment Group | Icon Media vs. Green Leaf Innovations | Icon Media vs. Plandai Biotech | Icon Media vs. All American Gld |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |