Correlation Between Mentor Capital and ICOA

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

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

Diversification Opportunities for Mentor Capital and ICOA

-0.02

Correlation Coefficient

Mentor Capital  ICOA

Good diversification

The 3 months correlation between Mentor and ICOA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mentor Capital and ICOA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICOA Inc and Mentor Capital 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 Mentor Capital are associated (or correlated) with ICOA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICOA Inc has no effect on the direction of Mentor Capital i.e., Mentor Capital and ICOA go up and down completely randomly.

Pair Corralation between Mentor Capital and ICOA

If you would invest  0.01  in ICOA Inc on December 27, 2024 and sell it today you would earn a total of  0.00  from holding ICOA Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Mentor Capital  vs.  ICOA Inc

Mentor Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mentor Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

ICOA Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ICOA Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ICOA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mentor Capital and ICOA

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

The idea behind Mentor Capital and ICOA Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.