Correlation Between Bbh Intermediate and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Icon Financial 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 Bbh Intermediate and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Icon Financial Fund, you can compare the effects of market volatilities on Bbh Intermediate and Icon Financial 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 Bbh Intermediate with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Icon Financial.
Diversification Opportunities for Bbh Intermediate and Icon Financial
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BBH and Icon is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Icon Financial go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Icon Financial
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.07 times more return on investment than Icon Financial. However, Bbh Intermediate Municipal is 13.88 times less risky than Icon Financial. It trades about 0.15 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.08 per unit of risk. If you would invest 1,028 in Bbh Intermediate Municipal on September 4, 2024 and sell it today you would earn a total of 8.00 from holding Bbh Intermediate Municipal or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Icon Financial Fund
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Icon Financial |
Bbh Intermediate and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Icon Financial
The main advantage of trading using opposite Bbh Intermediate and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Icon Financial 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 Financial will offset losses from the drop in Icon Financial's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Partner Fund |
| Icon Financial vs. Limited Term Tax | Icon Financial vs. Bbh Intermediate Municipal | Icon Financial vs. Alliancebernstein National Municipal | Icon Financial vs. Gamco Global Telecommunications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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