Correlation Between ICF International and Forrester Research
Can any of the company-specific risk be diversified away by investing in both ICF International and Forrester Research 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 Forrester Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICF International and Forrester Research, you can compare the effects of market volatilities on ICF International and Forrester Research 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 Forrester Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICF International and Forrester Research.
Diversification Opportunities for ICF International and Forrester Research
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICF and Forrester is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ICF International and Forrester Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forrester Research 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 Forrester Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forrester Research has no effect on the direction of ICF International i.e., ICF International and Forrester Research go up and down completely randomly.
Pair Corralation between ICF International and Forrester Research
Given the investment horizon of 90 days ICF International is expected to generate 1.81 times less return on investment than Forrester Research. But when comparing it to its historical volatility, ICF International is 1.45 times less risky than Forrester Research. It trades about 0.02 of its potential returns per unit of risk. Forrester Research is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 962.00 in Forrester Research on March 20, 2025 and sell it today you would earn a total of 28.00 from holding Forrester Research or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICF International vs. Forrester Research
Performance |
| Timeline |
| ICF International |
| Forrester Research |
ICF International and Forrester Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICF International and Forrester Research
The main advantage of trading using opposite ICF International and Forrester Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICF International position performs unexpectedly, Forrester Research 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 Forrester Research will offset losses from the drop in Forrester Research's long position.| ICF International vs. Forrester Research | ICF International vs. Huron Consulting Group | ICF International vs. Franklin Covey | ICF International vs. FTI Consulting |
| Forrester Research vs. Huron Consulting Group | Forrester Research vs. ICF International | Forrester Research vs. Franklin Covey | Forrester Research vs. FTI Consulting |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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