Correlation Between ICON Project and Cosmos
Can any of the company-specific risk be diversified away by investing in both ICON Project and Cosmos 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 Cosmos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and Cosmos, you can compare the effects of market volatilities on ICON Project and Cosmos 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 Cosmos. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and Cosmos.
Diversification Opportunities for ICON Project and Cosmos
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and Cosmos is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and Cosmos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos 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 Cosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos has no effect on the direction of ICON Project i.e., ICON Project and Cosmos go up and down completely randomly.
Pair Corralation between ICON Project and Cosmos
Assuming the 90 days trading horizon ICON Project is expected to generate 1.26 times more return on investment than Cosmos. However, ICON Project is 1.26 times more volatile than Cosmos. It trades about 0.17 of its potential returns per unit of risk. Cosmos is currently generating about 0.1 per unit of risk. If you would invest 29.00 in ICON Project on December 30, 2023 and sell it today you would earn a total of 7.00 from holding ICON Project or generate 24.14% 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. Cosmos
Performance |
Timeline |
ICON Project |
Cosmos |
ICON Project and Cosmos Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICON Project and Cosmos
The main advantage of trading using opposite ICON Project and Cosmos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, Cosmos 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 Cosmos will offset losses from the drop in Cosmos' 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities |