Correlation Between SCOR PK and ICTS International
Can any of the company-specific risk be diversified away by investing in both SCOR PK and ICTS International 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 SCOR PK and ICTS International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and ICTS International NV, you can compare the effects of market volatilities on SCOR PK and ICTS International 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 SCOR PK with a short position of ICTS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and ICTS International.
Diversification Opportunities for SCOR PK and ICTS International
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCOR and ICTS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and ICTS International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICTS International and SCOR PK 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 SCOR PK are associated (or correlated) with ICTS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICTS International has no effect on the direction of SCOR PK i.e., SCOR PK and ICTS International go up and down completely randomly.
Pair Corralation between SCOR PK and ICTS International
Assuming the 90 days horizon SCOR PK is expected to generate 0.66 times more return on investment than ICTS International. However, SCOR PK is 1.52 times less risky than ICTS International. It trades about 0.03 of its potential returns per unit of risk. ICTS International NV is currently generating about 0.0 per unit of risk. If you would invest 204.00 in SCOR PK on September 3, 2024 and sell it today you would earn a total of 44.00 from holding SCOR PK or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
SCOR PK vs. ICTS International NV
Performance |
| Timeline |
| SCOR PK |
| ICTS International |
SCOR PK and ICTS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and ICTS International
The main advantage of trading using opposite SCOR PK and ICTS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, ICTS International 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 ICTS International will offset losses from the drop in ICTS International's long position.The idea behind SCOR PK and ICTS International NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ICTS International vs. TOMI Environmental Solutions | ICTS International vs. SCOR PK | ICTS International vs. HUMANA INC | ICTS International vs. Aquagold International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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