Correlation Between SOUL and ICON Project

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

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

Diversification Opportunities for SOUL and ICON Project

-0.15

Correlation Coefficient

SOUL  ICON Project

Good diversification

The 3 months correlation between SOUL and ICON is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SOUL and ICON Project in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICON Project and SOUL 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 SOUL are associated (or correlated) with ICON Project. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICON Project has no effect on the direction of SOUL i.e., SOUL and ICON Project go up and down completely randomly.

Pair Corralation between SOUL and ICON Project

Assuming the 90 days trading horizon SOUL is expected to under-perform the ICON Project. In addition to that, SOUL is 1.05 times more volatile than ICON Project. It trades about -0.12 of its total potential returns per unit of risk. ICON Project is currently generating about 0.05 per unit of volatility. If you would invest  12.00  in ICON Project on May 21, 2025 and sell it today you would earn a total of  1.00  from holding ICON Project or generate 8.33% return on investment over 90 days.

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

SOUL  vs.  ICON Project

SOUL

Risk-Adjusted Performance

Weakest

Over the last 90 days SOUL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's 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 SOUL shareholders.

ICON Project

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ICON Project are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ICON Project exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SOUL and ICON Project

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

The idea behind SOUL and ICON Project 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.