Correlation Between VEEA and Icon Information
Can any of the company-specific risk be diversified away by investing in both VEEA and Icon Information 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 VEEA and Icon Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VEEA and Icon Information Technology, you can compare the effects of market volatilities on VEEA and Icon Information 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 VEEA with a short position of Icon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEEA and Icon Information.
Diversification Opportunities for VEEA and Icon Information
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between VEEA and Icon is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding VEEA and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec and VEEA 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 VEEA are associated (or correlated) with Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of VEEA i.e., VEEA and Icon Information go up and down completely randomly.
Pair Corralation between VEEA and Icon Information
Given the investment horizon of 90 days VEEA is expected to under-perform the Icon Information. In addition to that, VEEA is 5.23 times more volatile than Icon Information Technology. It trades about -0.24 of its total potential returns per unit of risk. Icon Information Technology is currently generating about 0.15 per unit of volatility. If you would invest 1,666 in Icon Information Technology on August 29, 2024 and sell it today you would earn a total of 62.00 from holding Icon Information Technology or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VEEA vs. Icon Information Technology
Performance |
| Timeline |
| VEEA |
| Icon Information Tec |
VEEA and Icon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VEEA and Icon Information
The main advantage of trading using opposite VEEA and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEEA position performs unexpectedly, Icon Information 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 Information will offset losses from the drop in Icon Information's long position.The idea behind VEEA and Icon Information Technology 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.| Icon Information vs. Ab All Market | Icon Information vs. Western Asset Diversified | Icon Information vs. T Rowe Price | Icon Information vs. Pnc Emerging Markets |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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