Correlation Between VivoPower International and Icon Information
Can any of the company-specific risk be diversified away by investing in both VivoPower International 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 VivoPower International and Icon Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VivoPower International PLC and Icon Information Technology, you can compare the effects of market volatilities on VivoPower International 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 VivoPower International with a short position of Icon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of VivoPower International and Icon Information.
Diversification Opportunities for VivoPower International and Icon Information
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VivoPower and Icon is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding VivoPower International PLC 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 VivoPower International 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 VivoPower International PLC 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 VivoPower International i.e., VivoPower International and Icon Information go up and down completely randomly.
Pair Corralation between VivoPower International and Icon Information
Given the investment horizon of 90 days VivoPower International PLC is expected to generate 15.47 times more return on investment than Icon Information. However, VivoPower International is 15.47 times more volatile than Icon Information Technology. It trades about 0.11 of its potential returns per unit of risk. Icon Information Technology is currently generating about 0.09 per unit of risk. If you would invest 78.00 in VivoPower International PLC on August 25, 2024 and sell it today you would earn a total of 14.00 from holding VivoPower International PLC or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VivoPower International PLC vs. Icon Information Technology
Performance |
| Timeline |
| VivoPower International |
| Icon Information Tec |
VivoPower International and Icon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VivoPower International and Icon Information
The main advantage of trading using opposite VivoPower International and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VivoPower International 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.| VivoPower International vs. Emeren Group | VivoPower International vs. Tigo Energy | VivoPower International vs. Sunrun Inc | VivoPower International vs. Sunnova Energy International |
| Icon Information vs. VEEA | Icon Information vs. VivoPower International PLC | Icon Information vs. WEBTOON Entertainment Common | Icon Information vs. Icon Bond Fund |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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