Correlation Between Icon Financial and Voya High
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Voya High 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 Voya High 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 Voya High Yield, you can compare the effects of market volatilities on Icon Financial and Voya High 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 Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Voya High.
Diversification Opportunities for Icon Financial and Voya High
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Voya is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield 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 Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Icon Financial i.e., Icon Financial and Voya High go up and down completely randomly.
Pair Corralation between Icon Financial and Voya High
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Voya High. In addition to that, Icon Financial is 15.37 times more volatile than Voya High Yield. It trades about -0.1 of its total potential returns per unit of risk. Voya High Yield is currently generating about -0.02 per unit of volatility. If you would invest 693.00 in Voya High Yield on September 23, 2024 and sell it today you would lose (1.00) from holding Voya High Yield or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Voya High Yield
Performance |
| Timeline |
| Icon Financial |
| Voya High Yield |
Icon Financial and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Voya High
The main advantage of trading using opposite Icon Financial and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Voya High 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 Voya High will offset losses from the drop in Voya High's long position.| Icon Financial vs. James Balanced Golden | Icon Financial vs. Vy Goldman Sachs | Icon Financial vs. Gabelli Gold Fund | Icon Financial vs. Gamco Global Gold |
| Voya High vs. John Hancock Ii | Voya High vs. Vanguard Small Cap Value | Voya High vs. Applied Finance Explorer | Voya High vs. Mutual Of America |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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