Correlation Between Icon Financial and Fidelity Total
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Fidelity Total 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 Fidelity Total 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 Fidelity Total Bond, you can compare the effects of market volatilities on Icon Financial and Fidelity Total 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 Fidelity Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Fidelity Total.
Diversification Opportunities for Icon Financial and Fidelity Total
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Fidelity is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Fidelity Total Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Total Bond 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 Fidelity Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Total Bond has no effect on the direction of Icon Financial i.e., Icon Financial and Fidelity Total go up and down completely randomly.
Pair Corralation between Icon Financial and Fidelity Total
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Fidelity Total. In addition to that, Icon Financial is 13.05 times more volatile than Fidelity Total Bond. It trades about -0.16 of its total potential returns per unit of risk. Fidelity Total Bond is currently generating about 0.18 per unit of volatility. If you would invest 948.00 in Fidelity Total Bond on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Fidelity Total Bond or generate 0.95% 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. Fidelity Total Bond
Performance |
| Timeline |
| Icon Financial |
| Fidelity Total Bond |
Icon Financial and Fidelity Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Fidelity Total
The main advantage of trading using opposite Icon Financial and Fidelity Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Fidelity Total 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 Fidelity Total will offset losses from the drop in Fidelity Total'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 |
| Fidelity Total vs. Dimensional Retirement Income | Fidelity Total vs. Deutsche Multi Asset Moderate | Fidelity Total vs. Franklin Lifesmart Retirement | Fidelity Total vs. Jpmorgan Smartretirement 2035 |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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