Correlation Between ICF International and Critical Solutions

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

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

Diversification Opportunities for ICF International and Critical Solutions

0.0

Correlation Coefficient

ICF International  Critical Solutions

Pay attention - limited upside

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

Pair Corralation between ICF International and Critical Solutions

If you would invest  8,307  in ICF International on July 19, 2025 and sell it today you would earn a total of  510.00  from holding ICF International or generate 6.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ICF International  vs.  Critical Solutions

ICF International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ICF International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, ICF International may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Critical Solutions

Risk-Adjusted Performance

Weakest

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

Pair Trading with ICF International and Critical Solutions

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

The idea behind ICF International and Critical Solutions 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.