Correlation Between Radcom and ICC Holdings
Can any of the company-specific risk be diversified away by investing in both Radcom and ICC Holdings 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 Radcom and ICC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radcom and ICC Holdings, you can compare the effects of market volatilities on Radcom and ICC Holdings 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 Radcom with a short position of ICC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radcom and ICC Holdings.
Diversification Opportunities for Radcom and ICC Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Radcom and ICC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC Holdings and Radcom 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 Radcom are associated (or correlated) with ICC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICC Holdings has no effect on the direction of Radcom i.e., Radcom and ICC Holdings go up and down completely randomly.
Pair Corralation between Radcom and ICC Holdings
Given the investment horizon of 90 days Radcom is expected to generate 7.4 times more return on investment than ICC Holdings. However, Radcom is 7.4 times more volatile than ICC Holdings. It trades about 0.21 of its potential returns per unit of risk. ICC Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,003 in Radcom on August 30, 2024 and sell it today you would earn a total of 182.00 from holding Radcom or generate 18.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Radcom vs. ICC Holdings
Performance |
| Timeline |
| Radcom |
| ICC Holdings |
Radcom and ICC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radcom and ICC Holdings
The main advantage of trading using opposite Radcom and ICC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radcom position performs unexpectedly, ICC Holdings 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 ICC Holdings will offset losses from the drop in ICC Holdings' long position.| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
| ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title | ICC Holdings vs. Essent 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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