Correlation Between Icon Financial and Qs Growth
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Qs Growth 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 Qs Growth 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 Qs Growth Fund, you can compare the effects of market volatilities on Icon Financial and Qs Growth 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 Qs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Qs Growth.
Diversification Opportunities for Icon Financial and Qs Growth
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Icon and LANIX is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Qs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Growth Fund 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 Qs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Growth Fund has no effect on the direction of Icon Financial i.e., Icon Financial and Qs Growth go up and down completely randomly.
Pair Corralation between Icon Financial and Qs Growth
Assuming the 90 days horizon Icon Financial Fund is expected to generate 0.66 times more return on investment than Qs Growth. However, Icon Financial Fund is 1.52 times less risky than Qs Growth. It trades about -0.21 of its potential returns per unit of risk. Qs Growth Fund is currently generating about -0.25 per unit of risk. If you would invest 973.00 in Icon Financial Fund on October 16, 2024 and sell it today you would lose (37.00) from holding Icon Financial Fund or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Qs Growth Fund
Performance |
| Timeline |
| Icon Financial |
| Qs Growth Fund |
Icon Financial and Qs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Qs Growth
The main advantage of trading using opposite Icon Financial and Qs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Qs Growth 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 Qs Growth will offset losses from the drop in Qs Growth's long position.| Icon Financial vs. Georgia Tax Free Bond | Icon Financial vs. Franklin Government Money | Icon Financial vs. Versatile Bond Portfolio | Icon Financial vs. Old Westbury Municipal |
| Qs Growth vs. Kirr Marbach Partners | Qs Growth vs. Arrow Managed Futures | Qs Growth vs. Pabrai Wagons Institutional | Qs Growth vs. Ab New York |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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