Correlation Between Icon Natural and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Massmutual Select 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 Icon Natural and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Natural Resources and Massmutual Select Growth, you can compare the effects of market volatilities on Icon Natural and Massmutual Select 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 Icon Natural with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Massmutual Select.
Diversification Opportunities for Icon Natural and Massmutual Select
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and Massmutual is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Massmutual Select Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Growth and Icon Natural 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 Icon Natural Resources are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Growth has no effect on the direction of Icon Natural i.e., Icon Natural and Massmutual Select go up and down completely randomly.
Pair Corralation between Icon Natural and Massmutual Select
If you would invest 1,827 in Icon Natural Resources on August 29, 2024 and sell it today you would earn a total of 154.00 from holding Icon Natural Resources or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Icon Natural Resources vs. Massmutual Select Growth
Performance |
| Timeline |
| Icon Natural Resources |
| Massmutual Select Growth |
Icon Natural and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Massmutual Select
The main advantage of trading using opposite Icon Natural and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.The idea behind Icon Natural Resources and Massmutual Select Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Massmutual Select vs. Tortoise Energy Independence | Massmutual Select vs. Icon Natural Resources | Massmutual Select vs. Energy Services Fund | Massmutual Select vs. Gmo 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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