Correlation Between Where Food and ICC Holdings
Can any of the company-specific risk be diversified away by investing in both Where Food and ICC Holdings 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 Where Food and ICC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Where Food Comes and ICC Holdings, you can compare the effects of market volatilities on Where Food 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 Where Food with a short position of ICC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and ICC Holdings.
Diversification Opportunities for Where Food and ICC Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Where and ICC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC Holdings and Where Food 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 Where Food Comes 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 Where Food i.e., Where Food and ICC Holdings go up and down completely randomly.
Pair Corralation between Where Food and ICC Holdings
Given the investment horizon of 90 days Where Food Comes is expected to under-perform the ICC Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Where Food Comes is 22.08 times less risky than ICC Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The ICC Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,525 in ICC Holdings on August 23, 2024 and sell it today you would earn a total of 782.01 from holding ICC Holdings or generate 51.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.68% |
| Values | Daily Returns |
Where Food Comes vs. ICC Holdings
Performance |
| Timeline |
| Where Food Comes |
| ICC Holdings |
Where Food and ICC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Where Food and ICC Holdings
The main advantage of trading using opposite Where Food and ICC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Where Food 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.| Where Food vs. Issuer Direct Corp | Where Food vs. Smith Midland Corp | Where Food vs. Bm Technologies | Where Food vs. 1StdibsCom |
| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |