Correlation Between Upstream Bio, and ICC Holdings

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

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

Diversification Opportunities for Upstream Bio, and ICC Holdings

-0.18

Correlation Coefficient

Upstream Bio,  ICC Holdings

Good diversification

The 3 months correlation between Upstream and ICC is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Upstream Bio, and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC Holdings and Upstream Bio, 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 Upstream Bio, are associated (or correlated) with ICC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICC Holdings has no effect on the direction of Upstream Bio, i.e., Upstream Bio, and ICC Holdings go up and down completely randomly.

Pair Corralation between Upstream Bio, and ICC Holdings

Considering the 90-day investment horizon Upstream Bio, is expected to under-perform the ICC Holdings. In addition to that, Upstream Bio, is 8.87 times more volatile than ICC Holdings. It trades about -0.14 of its total potential returns per unit of risk. ICC Holdings is currently generating about 0.05 per unit of volatility. If you would invest  2,311  in ICC Holdings on October 4, 2024 and sell it today you would earn a total of  17.00  from holding ICC Holdings or generate 0.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Upstream Bio,  vs.  ICC Holdings

Upstream Bio,

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Upstream Bio, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Upstream Bio, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ICC Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ICC Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, ICC Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Upstream Bio, and ICC Holdings

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

The idea behind Upstream Bio, and ICC Holdings 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.