Correlation Between Icon Media and Fbec Worldwide

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

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

Diversification Opportunities for Icon Media and Fbec Worldwide

-0.43

Correlation Coefficient

Icon Media  Fbec Worldwide

Very good diversification

The 3 months correlation between Icon and Fbec is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Icon Media Holdings and Fbec Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fbec Worldwide and Icon Media 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 Media Holdings are associated (or correlated) with Fbec Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fbec Worldwide has no effect on the direction of Icon Media i.e., Icon Media and Fbec Worldwide go up and down completely randomly.

Pair Corralation between Icon Media and Fbec Worldwide

Given the investment horizon of 90 days Icon Media Holdings is expected to generate 2.34 times more return on investment than Fbec Worldwide. However, Icon Media is 2.34 times more volatile than Fbec Worldwide. It trades about 0.15 of its potential returns per unit of risk. Fbec Worldwide is currently generating about -0.07 per unit of risk. If you would invest  0.02  in Icon Media Holdings on May 5, 2025 and sell it today you would earn a total of  0.01  from holding Icon Media Holdings or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Icon Media Holdings  vs.  Fbec Worldwide

Icon Media Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Media Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Icon Media displayed solid returns over the last few months and may actually be approaching a breakup point.

Fbec Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fbec Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Icon Media and Fbec Worldwide

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

The idea behind Icon Media Holdings and Fbec Worldwide 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.