Correlation Between Icon Financial and Nuveen Short
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Nuveen Short 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 Nuveen Short 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 Nuveen Short Term, you can compare the effects of market volatilities on Icon Financial and Nuveen Short 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 Nuveen Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Nuveen Short.
Diversification Opportunities for Icon Financial and Nuveen Short
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and Nuveen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Nuveen Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Short Term 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 Nuveen Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Short Term has no effect on the direction of Icon Financial i.e., Icon Financial and Nuveen Short go up and down completely randomly.
Pair Corralation between Icon Financial and Nuveen Short
Assuming the 90 days horizon Icon Financial Fund is expected to generate 15.42 times more return on investment than Nuveen Short. However, Icon Financial is 15.42 times more volatile than Nuveen Short Term. It trades about 0.13 of its potential returns per unit of risk. Nuveen Short Term is currently generating about 0.26 per unit of risk. If you would invest 950.00 in Icon Financial Fund on November 3, 2024 and sell it today you would earn a total of 24.00 from holding Icon Financial Fund or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Icon Financial Fund vs. Nuveen Short Term
Performance |
| Timeline |
| Icon Financial |
| Nuveen Short Term |
Icon Financial and Nuveen Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Nuveen Short
The main advantage of trading using opposite Icon Financial and Nuveen Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Nuveen Short 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 Nuveen Short will offset losses from the drop in Nuveen Short's long position.| Icon Financial vs. Tax Managed Mid Small | Icon Financial vs. Touchstone Small Cap | Icon Financial vs. Needham Small Cap | Icon Financial vs. Sp Smallcap 600 |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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