Correlation Between Icecure Medical and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Dow Jones 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 Icecure Medical and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Dow Jones Industrial, you can compare the effects of market volatilities on Icecure Medical and Dow Jones 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 Icecure Medical with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Dow Jones.
Diversification Opportunities for Icecure Medical and Dow Jones
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Icecure and Dow is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Icecure Medical 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 Icecure Medical are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Icecure Medical i.e., Icecure Medical and Dow Jones go up and down completely randomly.
Pair Corralation between Icecure Medical and Dow Jones
Given the investment horizon of 90 days Icecure Medical is expected to generate 7.19 times more return on investment than Dow Jones. However, Icecure Medical is 7.19 times more volatile than Dow Jones Industrial. It trades about 0.09 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.19 per unit of risk. If you would invest 64.00 in Icecure Medical on September 4, 2024 and sell it today you would earn a total of 17.00 from holding Icecure Medical or generate 26.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Icecure Medical vs. Dow Jones Industrial
Performance |
Timeline |
Icecure Medical and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Icecure Medical
Pair trading matchups for Icecure Medical
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Icecure Medical and Dow Jones
The main advantage of trading using opposite Icecure Medical and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |