Correlation Between ICON PROPERTIES and NATIONAL INVESTMENT

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

By analyzing existing cross correlation between ICON PROPERTIES LIMITED and NATIONAL INVESTMENT TRUST, you can compare the effects of market volatilities on ICON PROPERTIES and NATIONAL INVESTMENT 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 ICON PROPERTIES with a short position of NATIONAL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON PROPERTIES and NATIONAL INVESTMENT.

Diversification Opportunities for ICON PROPERTIES and NATIONAL INVESTMENT

0.93

Correlation Coefficient

ICON PROPERTIES  NATIONAL INVESTMENT

Almost no diversification

The 3 months correlation between ICON and NATIONAL is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ICON PROPERTIES LIMITED and NATIONAL INVESTMENT TRUST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL INVESTMENT TRUST and ICON PROPERTIES 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 ICON PROPERTIES LIMITED are associated (or correlated) with NATIONAL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL INVESTMENT TRUST has no effect on the direction of ICON PROPERTIES i.e., ICON PROPERTIES and NATIONAL INVESTMENT go up and down completely randomly.

Pair Corralation between ICON PROPERTIES and NATIONAL INVESTMENT

Assuming the 90 days trading horizon ICON PROPERTIES LIMITED is expected to generate 2.14 times more return on investment than NATIONAL INVESTMENT. However, ICON PROPERTIES is 2.14 times more volatile than NATIONAL INVESTMENT TRUST. It trades about 0.17 of its potential returns per unit of risk. NATIONAL INVESTMENT TRUST is currently generating about 0.13 per unit of risk. If you would invest  1,488  in ICON PROPERTIES LIMITED on October 12, 2024 and sell it today you would earn a total of  317.00  from holding ICON PROPERTIES LIMITED or generate 21.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

ICON PROPERTIES LIMITED  vs.  NATIONAL INVESTMENT TRUST

ICON PROPERTIES

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ICON PROPERTIES LIMITED are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ICON PROPERTIES unveiled solid returns over the last few months and may actually be approaching a breakup point.

NATIONAL INVESTMENT TRUST

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NATIONAL INVESTMENT TRUST are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, NATIONAL INVESTMENT may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with ICON PROPERTIES and NATIONAL INVESTMENT

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

The idea behind ICON PROPERTIES LIMITED and NATIONAL INVESTMENT TRUST 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.