Correlation Between GN Store and Icad

Can any of the company-specific risk be diversified away by investing in both GN Store and Icad 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 GN Store and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GN Store Nord and icad inc, you can compare the effects of market volatilities on GN Store and Icad 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 GN Store with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of GN Store and Icad.

Diversification Opportunities for GN Store and Icad

-0.28

Correlation Coefficient

GN Store  Icad

Very good diversification

The 3 months correlation between GGNDF and Icad is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding GN Store Nord and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and GN Store 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 GN Store Nord are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of GN Store i.e., GN Store and Icad go up and down completely randomly.

Pair Corralation between GN Store and Icad

Assuming the 90 days horizon GN Store Nord is expected to generate 0.71 times more return on investment than Icad. However, GN Store Nord is 1.42 times less risky than Icad. It trades about -0.01 of its potential returns per unit of risk. icad inc is currently generating about -0.01 per unit of risk. If you would invest  2,466  in GN Store Nord on September 12, 2024 and sell it today you would lose (661.00) from holding GN Store Nord or give up 26.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GN Store Nord  vs.  icad inc

GN Store Nord

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GN Store Nord has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

icad inc

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in icad inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Icad exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GN Store and Icad

The main advantage of trading using opposite GN Store and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GN Store position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.

The idea behind GN Store Nord and icad inc 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.