Correlation Between Icon Financial and Guardian Dividend
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Guardian Dividend 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 Guardian Dividend 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 Guardian Dividend Growth, you can compare the effects of market volatilities on Icon Financial and Guardian Dividend 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 Guardian Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Guardian Dividend.
Diversification Opportunities for Icon Financial and Guardian Dividend
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Guardian is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Guardian Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Dividend Growth 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 Guardian Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Dividend Growth has no effect on the direction of Icon Financial i.e., Icon Financial and Guardian Dividend go up and down completely randomly.
Pair Corralation between Icon Financial and Guardian Dividend
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Guardian Dividend. In addition to that, Icon Financial is 4.75 times more volatile than Guardian Dividend Growth. It trades about -0.08 of its total potential returns per unit of risk. Guardian Dividend Growth is currently generating about -0.02 per unit of volatility. If you would invest 1,706 in Guardian Dividend Growth on September 13, 2024 and sell it today you would lose (10.00) from holding Guardian Dividend Growth or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Icon Financial Fund vs. Guardian Dividend Growth
Performance |
| Timeline |
| Icon Financial |
| Guardian Dividend Growth |
Icon Financial and Guardian Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Guardian Dividend
The main advantage of trading using opposite Icon Financial and Guardian Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Guardian Dividend 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 Guardian Dividend will offset losses from the drop in Guardian Dividend's long position.| Icon Financial vs. Locorr Market Trend | Icon Financial vs. Transamerica Emerging Markets | Icon Financial vs. Ashmore Emerging Markets | Icon Financial vs. Kinetics Market Opportunities |
| Guardian Dividend vs. Guardian Fundamental Global | Guardian Dividend vs. Gmo Small Cap | Guardian Dividend vs. Morningstar Unconstrained Allocation | Guardian Dividend vs. One Choice 2055 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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