Correlation Between Icon Financial and Dreyfus Floating
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Dreyfus Floating 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 Dreyfus Floating 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 Dreyfus Floating Rate, you can compare the effects of market volatilities on Icon Financial and Dreyfus Floating 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 Dreyfus Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Dreyfus Floating.
Diversification Opportunities for Icon Financial and Dreyfus Floating
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Dreyfus is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Dreyfus Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Floating Rate 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 Dreyfus Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Floating Rate has no effect on the direction of Icon Financial i.e., Icon Financial and Dreyfus Floating go up and down completely randomly.
Pair Corralation between Icon Financial and Dreyfus Floating
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Dreyfus Floating. In addition to that, Icon Financial is 16.84 times more volatile than Dreyfus Floating Rate. It trades about 0.0 of its total potential returns per unit of risk. Dreyfus Floating Rate is currently generating about 0.47 per unit of volatility. If you would invest 1,026 in Dreyfus Floating Rate on September 14, 2024 and sell it today you would earn a total of 94.00 from holding Dreyfus Floating Rate or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Dreyfus Floating Rate
Performance |
| Timeline |
| Icon Financial |
| Dreyfus Floating Rate |
Icon Financial and Dreyfus Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Dreyfus Floating
The main advantage of trading using opposite Icon Financial and Dreyfus Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Dreyfus Floating 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 Dreyfus Floating will offset losses from the drop in Dreyfus Floating's long position.| Icon Financial vs. Science Technology Fund | Icon Financial vs. Goldman Sachs Technology | Icon Financial vs. Allianzgi Technology Fund | Icon Financial vs. Janus Global Technology |
| Dreyfus Floating vs. Angel Oak Ultrashort | Dreyfus Floating vs. Blackrock Short Term Inflat Protected | Dreyfus Floating vs. Boston Partners Longshort | Dreyfus Floating vs. Barings Active Short |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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