Correlation Between 69351UAU7 and ICC Holdings
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By analyzing existing cross correlation between PPL ELEC UTILS and ICC Holdings, you can compare the effects of market volatilities on 69351UAU7 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 69351UAU7 with a short position of ICC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 69351UAU7 and ICC Holdings.
Diversification Opportunities for 69351UAU7 and ICC Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 69351UAU7 and ICC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PPL ELEC UTILS and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC Holdings and 69351UAU7 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 PPL ELEC UTILS 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 69351UAU7 i.e., 69351UAU7 and ICC Holdings go up and down completely randomly.
Pair Corralation between 69351UAU7 and ICC Holdings
Assuming the 90 days trading horizon PPL ELEC UTILS is expected to generate 1.69 times more return on investment than ICC Holdings. However, 69351UAU7 is 1.69 times more volatile than ICC Holdings. It trades about 0.11 of its potential returns per unit of risk. ICC Holdings is currently generating about -0.02 per unit of risk. If you would invest 8,066 in PPL ELEC UTILS on August 30, 2024 and sell it today you would earn a total of 100.00 from holding PPL ELEC UTILS or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 72.22% |
| Values | Daily Returns |
PPL ELEC UTILS vs. ICC Holdings
Performance |
| Timeline |
| PPL ELEC UTILS |
| ICC Holdings |
69351UAU7 and ICC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 69351UAU7 and ICC Holdings
The main advantage of trading using opposite 69351UAU7 and ICC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 69351UAU7 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.| 69351UAU7 vs. Meiwu Technology Co | 69351UAU7 vs. Weyco Group | 69351UAU7 vs. Bt Brands | 69351UAU7 vs. Boyd Gaming |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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