Correlation Between Icon Financial and Asg Global
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Asg Global 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 Asg Global 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 Asg Global Alternatives, you can compare the effects of market volatilities on Icon Financial and Asg Global 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 Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Asg Global.
Diversification Opportunities for Icon Financial and Asg Global
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Icon and Asg is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives 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 Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Icon Financial i.e., Icon Financial and Asg Global go up and down completely randomly.
Pair Corralation between Icon Financial and Asg Global
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Asg Global. In addition to that, Icon Financial is 9.23 times more volatile than Asg Global Alternatives. It trades about -0.07 of its total potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.32 per unit of volatility. If you would invest 1,064 in Asg Global Alternatives on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Asg Global Alternatives or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Icon Financial Fund vs. Asg Global Alternatives
Performance |
| Timeline |
| Icon Financial |
| Asg Global Alternatives |
Icon Financial and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Asg Global
The main advantage of trading using opposite Icon Financial and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Asg Global 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 Asg Global will offset losses from the drop in Asg Global's long position.| Icon Financial vs. Nuveen Minnesota Municipal | Icon Financial vs. Bbh Intermediate Municipal | Icon Financial vs. Blrc Sgy Mnp | Icon Financial vs. T Rowe Price |
| Asg Global vs. Asg Managed Futures | Asg Global vs. Asg Managed Futures | Asg Global vs. Natixis Oakmark | Asg Global vs. Natixis Oakmark International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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