Correlation Between ICON PROPERTIES and NATIONAL BANK

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

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

Diversification Opportunities for ICON PROPERTIES and NATIONAL BANK

0.63

Correlation Coefficient

ICON PROPERTIES  NATIONAL BANK

Poor diversification

The 3 months correlation between ICON and NATIONAL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ICON PROPERTIES LIMITED and NATIONAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL BANK and ICON PROPERTIES 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 PROPERTIES LIMITED are associated (or correlated) with NATIONAL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL BANK has no effect on the direction of ICON PROPERTIES i.e., ICON PROPERTIES and NATIONAL BANK go up and down completely randomly.

Pair Corralation between ICON PROPERTIES and NATIONAL BANK

If you would invest  1,495  in ICON PROPERTIES LIMITED on September 14, 2024 and sell it today you would earn a total of  310.00  from holding ICON PROPERTIES LIMITED or generate 20.74% return on investment over 90 days.

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

ICON PROPERTIES LIMITED  vs.  NATIONAL BANK OF

ICON PROPERTIES

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ICON PROPERTIES LIMITED are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, ICON PROPERTIES unveiled solid returns over the last few months and may actually be approaching a breakup point.

NATIONAL BANK

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NATIONAL BANK OF are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, NATIONAL BANK is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ICON PROPERTIES and NATIONAL BANK

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

The idea behind ICON PROPERTIES LIMITED and NATIONAL BANK OF 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.