Correlation Between Cemtrex and ICTS International

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

By analyzing existing cross correlation between Cemtrex and ICTS International NV, you can compare the effects of market volatilities on Cemtrex and ICTS International 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 Cemtrex with a short position of ICTS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtrex and ICTS International.

Diversification Opportunities for Cemtrex and ICTS International

-0.14

Correlation Coefficient

Cemtrex  ICTS International

Good diversification

The 3 months correlation between Cemtrex and ICTS is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cemtrex and ICTS International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICTS International and Cemtrex 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 Cemtrex are associated (or correlated) with ICTS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICTS International has no effect on the direction of Cemtrex i.e., Cemtrex and ICTS International go up and down completely randomly.

Pair Corralation between Cemtrex and ICTS International

Given the investment horizon of 90 days Cemtrex is expected to generate 3.35 times more return on investment than ICTS International. However, Cemtrex is 3.35 times more volatile than ICTS International NV. It trades about 0.01 of its potential returns per unit of risk. ICTS International NV is currently generating about 0.01 per unit of risk. If you would invest  144.00  in Cemtrex on May 4, 2025 and sell it today you would lose (28.00) from holding Cemtrex or give up 19.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Cemtrex  vs.  ICTS International NV

Cemtrex

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtrex are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Cemtrex may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ICTS International

Risk-Adjusted Performance

Very Weak

Over the last 90 days ICTS International NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ICTS International is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cemtrex and ICTS International

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

The idea behind Cemtrex and ICTS International NV 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.