Correlation Between ICON Project and Status Network
Can any of the company-specific risk be diversified away by investing in both ICON Project and Status Network 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 Status Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and Status Network Token, you can compare the effects of market volatilities on ICON Project and Status Network 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 Status Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and Status Network.
Diversification Opportunities for ICON Project and Status Network
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and Status is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and Status Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Status Network Token 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 Status Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Status Network Token has no effect on the direction of ICON Project i.e., ICON Project and Status Network go up and down completely randomly.
Pair Corralation between ICON Project and Status Network
Assuming the 90 days trading horizon ICON Project is expected to under-perform the Status Network. In addition to that, ICON Project is 1.24 times more volatile than Status Network Token. It trades about -0.12 of its total potential returns per unit of risk. Status Network Token is currently generating about -0.09 per unit of volatility. If you would invest 4.51 in Status Network Token on January 20, 2024 and sell it today you would lose (0.71) from holding Status Network Token or give up 15.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
ICON Project vs. Status Network Token
Performance |
| Timeline |
| ICON Project |
| Status Network Token |
ICON Project and Status Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICON Project and Status Network
The main advantage of trading using opposite ICON Project and Status Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, Status Network 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 Status Network will offset losses from the drop in Status Network's long position.The idea behind ICON Project and Status Network Token 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.| Status Network vs. Solana | Status Network vs. XRP | Status Network vs. The Open Network | Status Network vs. Staked Ether |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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