Correlation Between Quantitative Longshort and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Quantitative Longshort 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 Quantitative Longshort and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantitative Longshort Equity and Icon Financial Fund, you can compare the effects of market volatilities on Quantitative Longshort 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 Quantitative Longshort with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative Longshort and Icon Financial.
Diversification Opportunities for Quantitative Longshort and Icon Financial
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Quantitative and Icon is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative Longshort Equity and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Quantitative Longshort 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 Quantitative Longshort Equity 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 Quantitative Longshort i.e., Quantitative Longshort and Icon Financial go up and down completely randomly.
Pair Corralation between Quantitative Longshort and Icon Financial
Assuming the 90 days horizon Quantitative Longshort Equity is expected to under-perform the Icon Financial. In addition to that, Quantitative Longshort is 2.17 times more volatile than Icon Financial Fund. It trades about -0.19 of its total potential returns per unit of risk. Icon Financial Fund is currently generating about -0.16 per unit of volatility. If you would invest 983.00 in Icon Financial Fund on October 11, 2024 and sell it today you would lose (30.00) from holding Icon Financial Fund or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantitative Longshort Equity vs. Icon Financial Fund
Performance |
| Timeline |
| Quantitative Longshort |
| Icon Financial |
Quantitative Longshort and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantitative Longshort and Icon Financial
The main advantage of trading using opposite Quantitative Longshort and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative Longshort 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.| Quantitative Longshort vs. Lord Abbett Short | Quantitative Longshort vs. Siit High Yield | Quantitative Longshort vs. Artisan High Income | Quantitative Longshort vs. Virtus High Yield |
| Icon Financial vs. Locorr Dynamic Equity | Icon Financial vs. Us Vector Equity | Icon Financial vs. Greenspring Fund Retail | Icon Financial vs. Quantitative Longshort Equity |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |