Correlation Between ICON Project and NEXO
Can any of the company-specific risk be diversified away by investing in both ICON Project and NEXO 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 NEXO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and NEXO, you can compare the effects of market volatilities on ICON Project and NEXO 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 NEXO. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and NEXO.
Diversification Opportunities for ICON Project and NEXO
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ICON and NEXO is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and NEXO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXO 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 NEXO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXO has no effect on the direction of ICON Project i.e., ICON Project and NEXO go up and down completely randomly.
Pair Corralation between ICON Project and NEXO
Assuming the 90 days trading horizon ICON Project is expected to generate 1.52 times less return on investment than NEXO. In addition to that, ICON Project is 1.4 times more volatile than NEXO. It trades about 0.0 of its total potential returns per unit of risk. NEXO is currently generating about 0.0 per unit of volatility. If you would invest 202.00 in NEXO on January 24, 2024 and sell it today you would lose (76.00) from holding NEXO or give up 37.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ICON Project vs. NEXO
Performance |
Timeline |
ICON Project |
NEXO |
ICON Project and NEXO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICON Project and NEXO
The main advantage of trading using opposite ICON Project and NEXO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, NEXO 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 NEXO will offset losses from the drop in NEXO'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |