Correlation Between Icon Financial and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Angel Oak 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 Financial and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Financial Fund and Angel Oak Ultrashort, you can compare the effects of market volatilities on Icon Financial and Angel Oak 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 Financial with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Angel Oak.
Diversification Opportunities for Icon Financial and Angel Oak
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Icon and Angel is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort and Icon Financial 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 Financial Fund are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Icon Financial i.e., Icon Financial and Angel Oak go up and down completely randomly.
Pair Corralation between Icon Financial and Angel Oak
Assuming the 90 days horizon Icon Financial is expected to generate 1.07 times less return on investment than Angel Oak. In addition to that, Icon Financial is 10.56 times more volatile than Angel Oak Ultrashort. It trades about 0.02 of its total potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.23 per unit of volatility. If you would invest 868.00 in Angel Oak Ultrashort on September 4, 2024 and sell it today you would earn a total of 115.00 from holding Angel Oak Ultrashort or generate 13.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Icon Financial Fund vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Icon Financial |
| Angel Oak Ultrashort |
Icon Financial and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Angel Oak
The main advantage of trading using opposite Icon Financial and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Icon Financial vs. Limited Term Tax | Icon Financial vs. Bbh Intermediate Municipal | Icon Financial vs. Alliancebernstein National Municipal | Icon Financial vs. Gamco Global Telecommunications |
| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |