Correlation Between Mitesco and ICoreConnect Common

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

By analyzing existing cross correlation between Mitesco and iCoreConnect Common stock, you can compare the effects of market volatilities on Mitesco and ICoreConnect Common 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 Mitesco with a short position of ICoreConnect Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitesco and ICoreConnect Common.

Diversification Opportunities for Mitesco and ICoreConnect Common

-0.52

Correlation Coefficient

Mitesco  ICoreConnect Common

Excellent diversification

The 3 months correlation between Mitesco and ICoreConnect is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mitesco and iCoreConnect Common stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iCoreConnect Common stock and Mitesco 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 Mitesco are associated (or correlated) with ICoreConnect Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iCoreConnect Common stock has no effect on the direction of Mitesco i.e., Mitesco and ICoreConnect Common go up and down completely randomly.

Pair Corralation between Mitesco and ICoreConnect Common

Given the investment horizon of 90 days Mitesco is expected to generate 3.27 times more return on investment than ICoreConnect Common. However, Mitesco is 3.27 times more volatile than iCoreConnect Common stock. It trades about 0.18 of its potential returns per unit of risk. iCoreConnect Common stock is currently generating about -0.1 per unit of risk. If you would invest  14.00  in Mitesco on September 10, 2024 and sell it today you would earn a total of  23.00  from holding Mitesco or generate 164.29% return on investment over 90 days.

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

Mitesco  vs.  iCoreConnect Common stock

Mitesco

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mitesco are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Mitesco demonstrated solid returns over the last few months and may actually be approaching a breakup point.

iCoreConnect Common stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iCoreConnect Common stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mitesco and ICoreConnect Common

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

The idea behind Mitesco and iCoreConnect Common stock 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.