Correlation Between Icon Financial and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Hussman Strategic 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 Hussman Strategic 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 Hussman Strategic Total, you can compare the effects of market volatilities on Icon Financial and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Hussman Strategic.
Diversification Opportunities for Icon Financial and Hussman Strategic
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Hussman is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Hussman Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic Total 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic Total has no effect on the direction of Icon Financial i.e., Icon Financial and Hussman Strategic go up and down completely randomly.
Pair Corralation between Icon Financial and Hussman Strategic
Assuming the 90 days horizon Icon Financial Fund is expected to generate 3.04 times more return on investment than Hussman Strategic. However, Icon Financial is 3.04 times more volatile than Hussman Strategic Total. It trades about 0.22 of its potential returns per unit of risk. Hussman Strategic Total is currently generating about -0.09 per unit of risk. If you would invest 1,086 in Icon Financial Fund on August 30, 2024 and sell it today you would earn a total of 67.00 from holding Icon Financial Fund or generate 6.17% 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. Hussman Strategic Total
Performance |
| Timeline |
| Icon Financial |
| Hussman Strategic Total |
Icon Financial and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Hussman Strategic
The main advantage of trading using opposite Icon Financial and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's long position.| Icon Financial vs. HUMANA INC | Icon Financial vs. Aquagold International | Icon Financial vs. Barloworld Ltd ADR | Icon Financial vs. Morningstar Unconstrained Allocation |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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