Correlation Between ICC Holdings and James River

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

By analyzing existing cross correlation between ICC Holdings and James River Group, you can compare the effects of market volatilities on ICC Holdings and James River 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 ICC Holdings with a short position of James River. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and James River.

Diversification Opportunities for ICC Holdings and James River

0.0

Correlation Coefficient

ICC Holdings  James River

Pay attention - limited upside

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

Pair Corralation between ICC Holdings and James River

If you would invest  490.00  in James River Group on May 5, 2025 and sell it today you would earn a total of  54.00  from holding James River Group or generate 11.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

ICC Holdings  vs.  James River Group

ICC Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ICC Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, ICC Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

James River Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in James River Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, James River reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ICC Holdings and James River

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

The idea behind ICC Holdings and James River Group 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.

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.