Correlation Between ICON Project and KMD
Can any of the company-specific risk be diversified away by investing in both ICON Project and KMD 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 KMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and KMD, you can compare the effects of market volatilities on ICON Project and KMD 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 KMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and KMD.
Diversification Opportunities for ICON Project and KMD
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and KMD is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and KMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMD 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 KMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMD has no effect on the direction of ICON Project i.e., ICON Project and KMD go up and down completely randomly.
Pair Corralation between ICON Project and KMD
Assuming the 90 days trading horizon ICON Project is expected to generate 1.32 times more return on investment than KMD. However, ICON Project is 1.32 times more volatile than KMD. It trades about 0.17 of its potential returns per unit of risk. KMD is currently generating about 0.22 per unit of risk. If you would invest 27.00 in ICON Project on December 29, 2023 and sell it today you would earn a total of 7.00 from holding ICON Project or generate 25.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ICON Project vs. KMD
Performance |
Timeline |
ICON Project |
KMD |
ICON Project and KMD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICON Project and KMD
The main advantage of trading using opposite ICON Project and KMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, KMD 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 KMD will offset losses from the drop in KMD's long position.ICON Project vs. Ethereum | ICON Project vs. Cardano | ICON Project vs. Avalanche | ICON Project vs. Internet Computer |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |