Correlation Between Icon Financial and Intech Us
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Intech Us 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 Intech Us 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 Intech Managed Volatility, you can compare the effects of market volatilities on Icon Financial and Intech Us 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 Intech Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Intech Us.
Diversification Opportunities for Icon Financial and Intech Us
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Icon and Intech is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Intech Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Icon Financial i.e., Icon Financial and Intech Us go up and down completely randomly.
Pair Corralation between Icon Financial and Intech Us
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Intech Us. In addition to that, Icon Financial is 2.14 times more volatile than Intech Managed Volatility. It trades about -0.03 of its total potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.15 per unit of volatility. If you would invest 1,063 in Intech Managed Volatility on September 1, 2024 and sell it today you would earn a total of 161.00 from holding Intech Managed Volatility or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Icon Financial Fund vs. Intech Managed Volatility
Performance |
| Timeline |
| Icon Financial |
| Intech Managed Volatility |
Icon Financial and Intech Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Intech Us
The main advantage of trading using opposite Icon Financial and Intech Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Intech Us 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 Intech Us will offset losses from the drop in Intech Us' 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 |
| Intech Us vs. Calvert Conservative Allocation | Intech Us vs. Pgim Conservative Retirement | Intech Us vs. Huber Capital Diversified | Intech Us vs. Massmutual Premier Diversified |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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