Correlation Between Blackrock and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Blackrock 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 Blackrock and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Gov Bd and Icon Financial Fund, you can compare the effects of market volatilities on Blackrock 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 Blackrock with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock and Icon Financial.
Diversification Opportunities for Blackrock and Icon Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Icon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Gov Bd and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Blackrock 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 Blackrock Gov Bd 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 Blackrock i.e., Blackrock and Icon Financial go up and down completely randomly.
Pair Corralation between Blackrock and Icon Financial
Assuming the 90 days horizon Blackrock Gov Bd is expected to generate 0.28 times more return on investment than Icon Financial. However, Blackrock Gov Bd is 3.55 times less risky than Icon Financial. It trades about 0.01 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.03 per unit of risk. If you would invest 883.00 in Blackrock Gov Bd on January 12, 2025 and sell it today you would earn a total of 15.00 from holding Blackrock Gov Bd or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Blackrock Gov Bd vs. Icon Financial Fund
Performance |
| Timeline |
| Blackrock Gov Bd |
| Icon Financial |
Blackrock and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock and Icon Financial
The main advantage of trading using opposite Blackrock and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock 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.| Blackrock vs. Legg Mason Partners | Blackrock vs. Pgim Esg High | Blackrock vs. Muzinich High Yield | Blackrock vs. Delaware Minnesota High Yield |
| Icon Financial vs. Nuveen California High | Icon Financial vs. Prudential Short Duration | Icon Financial vs. Victory High Yield | Icon Financial vs. T Rowe Price |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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