Correlation Between ICON PLC and Thrivent Partner

Can any of the company-specific risk be diversified away by investing in both ICON PLC and Thrivent Partner 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 PLC and Thrivent Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ICON PLC and Thrivent Partner Worldwide, you can compare the effects of market volatilities on ICON PLC and Thrivent Partner 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 PLC with a short position of Thrivent Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON PLC and Thrivent Partner.

Diversification Opportunities for ICON PLC and Thrivent Partner

0.0

Correlation Coefficient

ICON PLC  Thrivent Partner

Pay attention - limited upside

The 3 months correlation between ICON and Thrivent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICON PLC and Thrivent Partner Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Partner Wor and ICON PLC 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 PLC are associated (or correlated) with Thrivent Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Partner Wor has no effect on the direction of ICON PLC i.e., ICON PLC and Thrivent Partner go up and down completely randomly.

Pair Corralation between ICON PLC and Thrivent Partner

If you would invest  22,379  in ICON PLC on January 20, 2024 and sell it today you would earn a total of  6,803  from holding ICON PLC or generate 30.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ICON PLC  vs.  Thrivent Partner Worldwide

ICON PLC

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ICON PLC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady essential indicators, ICON PLC may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Thrivent Partner Wor

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Thrivent Partner Worldwide has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Thrivent Partner is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ICON PLC and Thrivent Partner

The main advantage of trading using opposite ICON PLC and Thrivent Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON PLC position performs unexpectedly, Thrivent Partner 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 Thrivent Partner will offset losses from the drop in Thrivent Partner's long position.

The idea behind ICON PLC and Thrivent Partner Worldwide 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.