Correlation Between 446150AX2 and ICC Holdings

Can any of the company-specific risk be diversified away by investing in both 446150AX2 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 446150AX2 and ICC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HBAN 2487 15 AUG 36 and ICC Holdings, you can compare the effects of market volatilities on 446150AX2 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 446150AX2 with a short position of ICC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 446150AX2 and ICC Holdings.

Diversification Opportunities for 446150AX2 and ICC Holdings

-0.43

Correlation Coefficient

446150AX2  ICC Holdings

Very good diversification

The 3 months correlation between 446150AX2 and ICC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HBAN 2487 15 AUG 36 and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC Holdings and 446150AX2 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 HBAN 2487 15 AUG 36 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 446150AX2 i.e., 446150AX2 and ICC Holdings go up and down completely randomly.

Pair Corralation between 446150AX2 and ICC Holdings

Assuming the 90 days trading horizon 446150AX2 is expected to generate 89.12 times less return on investment than ICC Holdings. But when comparing it to its historical volatility, HBAN 2487 15 AUG 36 is 34.99 times less risky than ICC Holdings. It trades about 0.02 of its potential returns per unit of risk. ICC Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,560  in ICC Holdings on October 4, 2024 and sell it today you would earn a total of  768.00  from holding ICC Holdings or generate 49.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	57.14%
Values	Daily Returns

HBAN 2487 15 AUG 36  vs.  ICC Holdings

HBAN 2487 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HBAN 2487 15 AUG 36 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 446150AX2 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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 446150AX2 and ICC Holdings

The main advantage of trading using opposite 446150AX2 and ICC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 446150AX2 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 HBAN 2487 15 AUG 36 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..