Correlation Between Star Equity and ICON PLC
Can any of the company-specific risk be diversified away by investing in both Star Equity and ICON PLC 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 Star Equity and ICON PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Equity Holdings and ICON PLC, you can compare the effects of market volatilities on Star Equity and ICON PLC 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 Star Equity with a short position of ICON PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Equity and ICON PLC.
Diversification Opportunities for Star Equity and ICON PLC
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Star and ICON is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Star Equity Holdings and ICON PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICON PLC and Star Equity 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 Star Equity Holdings are associated (or correlated) with ICON PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICON PLC has no effect on the direction of Star Equity i.e., Star Equity and ICON PLC go up and down completely randomly.
Pair Corralation between Star Equity and ICON PLC
Assuming the 90 days horizon Star Equity Holdings is expected to generate 0.93 times more return on investment than ICON PLC. However, Star Equity Holdings is 1.07 times less risky than ICON PLC. It trades about 0.03 of its potential returns per unit of risk. ICON PLC is currently generating about -0.03 per unit of risk. If you would invest 856.00 in Star Equity Holdings on September 3, 2024 and sell it today you would earn a total of 86.00 from holding Star Equity Holdings or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Equity Holdings vs. ICON PLC
Performance |
| Timeline |
| Star Equity Holdings |
| ICON PLC |
Star Equity and ICON PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Equity and ICON PLC
The main advantage of trading using opposite Star Equity and ICON PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Equity position performs unexpectedly, ICON PLC 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 PLC will offset losses from the drop in ICON PLC's long position.| Star Equity vs. Star Equity Holdings | Star Equity vs. XOMA Corp | Star Equity vs. Fundamental Global | Star Equity vs. Fortress Biotech Pref |
| ICON PLC vs. Mettler Toledo International | ICON PLC vs. Charles River Laboratories | ICON PLC vs. Laboratory of | ICON PLC vs. IQVIA Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |