Correlation Between ICON Project and Theta Network
Can any of the company-specific risk be diversified away by investing in both ICON Project and Theta 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 Theta 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 Theta Network, you can compare the effects of market volatilities on ICON Project and Theta 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 Theta Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and Theta Network.
Diversification Opportunities for ICON Project and Theta Network
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and Theta is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and Theta Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theta Network 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 Theta Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theta Network has no effect on the direction of ICON Project i.e., ICON Project and Theta Network go up and down completely randomly.
Pair Corralation between ICON Project and Theta Network
Assuming the 90 days trading horizon ICON Project is expected to generate 4.73 times less return on investment than Theta Network. But when comparing it to its historical volatility, ICON Project is 1.37 times less risky than Theta Network. It trades about 0.05 of its potential returns per unit of risk. Theta Network is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Theta Network on January 21, 2024 and sell it today you would earn a total of 113.00 from holding Theta Network or generate 120.21% 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. Theta Network
Performance |
| Timeline |
| ICON Project |
| Theta Network |
ICON Project and Theta Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICON Project and Theta Network
The main advantage of trading using opposite ICON Project and Theta Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, Theta 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 Theta Network will offset losses from the drop in Theta Network's long position.| ICON Project vs. Staked Ether | ICON Project vs. XCAD Network | ICON Project vs. Phala Network | ICON Project vs. EOSDAC |
| Theta Network vs. Theta Fuel | Theta Network vs. Staked Ether | Theta Network vs. XCAD Network | Theta Network vs. Phala Network |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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