Correlation Between ICON Project and Nano
Can any of the company-specific risk be diversified away by investing in both ICON Project and Nano 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 Nano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and Nano, you can compare the effects of market volatilities on ICON Project and Nano 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 Nano. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and Nano.
Diversification Opportunities for ICON Project and Nano
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and Nano is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and Nano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano 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 Nano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano has no effect on the direction of ICON Project i.e., ICON Project and Nano go up and down completely randomly.
Pair Corralation between ICON Project and Nano
Assuming the 90 days trading horizon ICON Project is expected to generate 1.2 times more return on investment than Nano. However, ICON Project is 1.2 times more volatile than Nano. It trades about 0.05 of its potential returns per unit of risk. Nano is currently generating about 0.03 per unit of risk. If you would invest 21.00 in ICON Project on January 21, 2024 and sell it today you would earn a total of 2.00 from holding ICON Project or generate 9.52% 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. Nano
Performance |
| Timeline |
| ICON Project |
| Nano |
ICON Project and Nano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICON Project and Nano
The main advantage of trading using opposite ICON Project and Nano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, Nano 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 Nano will offset losses from the drop in Nano'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |