Correlation Between ICON Project and Decred
Can any of the company-specific risk be diversified away by investing in both ICON Project and Decred 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 Project and Decred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and Decred, you can compare the effects of market volatilities on ICON Project and Decred 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 Project with a short position of Decred. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and Decred.
Diversification Opportunities for ICON Project and Decred
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and Decred is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and Decred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Decred and ICON Project 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 Project are associated (or correlated) with Decred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Decred has no effect on the direction of ICON Project i.e., ICON Project and Decred go up and down completely randomly.
Pair Corralation between ICON Project and Decred
Assuming the 90 days trading horizon ICON Project is expected to under-perform the Decred. In addition to that, ICON Project is 1.38 times more volatile than Decred. It trades about -0.04 of its total potential returns per unit of risk. Decred is currently generating about -0.05 per unit of volatility. If you would invest 2,258 in Decred on January 18, 2024 and sell it today you would lose (252.00) from holding Decred or give up 11.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICON Project vs. Decred
Performance |
| Timeline |
| ICON Project |
| Decred |
ICON Project and Decred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICON Project and Decred
The main advantage of trading using opposite ICON Project and Decred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, Decred 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 Decred will offset losses from the drop in Decred's long position.| ICON Project vs. Staked Ether | ICON Project vs. XCAD Network | ICON Project vs. Phala Network | ICON Project vs. EOSDAC |
Check out your portfolio center.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.
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