Correlation Between ICC Holdings and Konica Minolta
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Konica Minolta 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 ICC Holdings and Konica Minolta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Konica Minolta, you can compare the effects of market volatilities on ICC Holdings and Konica Minolta 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 ICC Holdings with a short position of Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Konica Minolta.
Diversification Opportunities for ICC Holdings and Konica Minolta
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICC and Konica is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta and ICC Holdings 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 ICC Holdings are associated (or correlated) with Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of ICC Holdings i.e., ICC Holdings and Konica Minolta go up and down completely randomly.
Pair Corralation between ICC Holdings and Konica Minolta
Given the investment horizon of 90 days ICC Holdings is expected to generate 14.48 times more return on investment than Konica Minolta. However, ICC Holdings is 14.48 times more volatile than Konica Minolta. It trades about 0.05 of its potential returns per unit of risk. Konica Minolta is currently generating about 0.03 per unit of risk. If you would invest 1,575 in ICC Holdings on September 25, 2024 and sell it today you would earn a total of 754.00 from holding ICC Holdings or generate 47.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 82.19% |
Values | Daily Returns |
ICC Holdings vs. Konica Minolta
Performance |
Timeline |
ICC Holdings |
Konica Minolta |
ICC Holdings and Konica Minolta Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICC Holdings and Konica Minolta
The main advantage of trading using opposite ICC Holdings and Konica Minolta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Konica Minolta 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 Konica Minolta will offset losses from the drop in Konica Minolta's long position.ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title | ICC Holdings vs. James River Group | ICC Holdings vs. Essent Group |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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