Correlation Between ICF International and GreenPro Capital

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

By analyzing existing cross correlation between ICF International and GreenPro Capital Corp, you can compare the effects of market volatilities on ICF International and GreenPro Capital 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 ICF International with a short position of GreenPro Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICF International and GreenPro Capital.

Diversification Opportunities for ICF International and GreenPro Capital

-0.73

Correlation Coefficient

ICF International  GreenPro Capital

Pay attention - limited upside

The 3 months correlation between ICF and GreenPro is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ICF International and GreenPro Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPro Capital Corp and ICF 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 ICF International are associated (or correlated) with GreenPro Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPro Capital Corp has no effect on the direction of ICF International i.e., ICF International and GreenPro Capital go up and down completely randomly.

Pair Corralation between ICF International and GreenPro Capital

Given the investment horizon of 90 days ICF International is expected to generate 2.08 times less return on investment than GreenPro Capital. But when comparing it to its historical volatility, ICF International is 3.49 times less risky than GreenPro Capital. It trades about 0.02 of its potential returns per unit of risk. GreenPro Capital Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  167.00  in GreenPro Capital Corp on October 4, 2024 and sell it today you would lose (56.00) from holding GreenPro Capital Corp or give up 33.53% of portfolio value over 90 days.

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

ICF International  vs.  GreenPro Capital Corp

ICF International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ICF International 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 technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

GreenPro Capital Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GreenPro Capital Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, GreenPro Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ICF International and GreenPro Capital

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

The idea behind ICF International and GreenPro Capital Corp 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.