Correlation Between Cornerstone Strategic and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Cornerstone Strategic 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 Cornerstone Strategic and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cornerstone Strategic Value and Icon Financial Fund, you can compare the effects of market volatilities on Cornerstone Strategic 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 Cornerstone Strategic with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Icon Financial.
Diversification Opportunities for Cornerstone Strategic and Icon Financial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cornerstone and Icon is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Cornerstone Strategic 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 Cornerstone Strategic Value 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 Cornerstone Strategic i.e., Cornerstone Strategic and Icon Financial go up and down completely randomly.
Pair Corralation between Cornerstone Strategic and Icon Financial
Considering the 90-day investment horizon Cornerstone Strategic Value is expected to generate 1.2 times more return on investment than Icon Financial. However, Cornerstone Strategic is 1.2 times more volatile than Icon Financial Fund. It trades about 0.08 of its potential returns per unit of risk. Icon Financial Fund is currently generating about 0.05 per unit of risk. If you would invest 582.00 in Cornerstone Strategic Value on August 24, 2024 and sell it today you would earn a total of 297.00 from holding Cornerstone Strategic Value or generate 51.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cornerstone Strategic Value vs. Icon Financial Fund
Performance |
| Timeline |
| Cornerstone Strategic |
| Icon Financial |
Cornerstone Strategic and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cornerstone Strategic and Icon Financial
The main advantage of trading using opposite Cornerstone Strategic and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornerstone Strategic 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.| Cornerstone Strategic vs. MFS Investment Grade | Cornerstone Strategic vs. Eaton Vance National | Cornerstone Strategic vs. Blackrock Muniyield Quality | Cornerstone Strategic vs. Munivest Fund |
| Icon Financial vs. Dreyfus Natural Resources | Icon Financial vs. Energy Basic Materials | Icon Financial vs. Franklin Natural Resources | Icon Financial vs. Icon Natural Resources |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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