Correlation Between Icon Financial and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Manning Napier 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 Manning Napier 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 Manning Napier Diversified, you can compare the effects of market volatilities on Icon Financial and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Manning Napier.
Diversification Opportunities for Icon Financial and Manning Napier
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Manning is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Manning Napier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Diver 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Diver has no effect on the direction of Icon Financial i.e., Icon Financial and Manning Napier go up and down completely randomly.
Pair Corralation between Icon Financial and Manning Napier
Assuming the 90 days horizon Icon Financial Fund is expected to generate 5.65 times more return on investment than Manning Napier. However, Icon Financial is 5.65 times more volatile than Manning Napier Diversified. It trades about 0.19 of its potential returns per unit of risk. Manning Napier Diversified is currently generating about 0.08 per unit of risk. If you would invest 1,078 in Icon Financial Fund on August 26, 2024 and sell it today you would earn a total of 58.00 from holding Icon Financial Fund or generate 5.38% 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. Manning Napier Diversified
Performance |
| Timeline |
| Icon Financial |
| Manning Napier Diver |
Icon Financial and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Manning Napier
The main advantage of trading using opposite Icon Financial and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Icon Financial vs. Dodge International Stock | Icon Financial vs. Dreyfusstandish Global Fixed | Icon Financial vs. Gmo Global Equity | Icon Financial vs. Artisan Select Equity |
| Manning Napier vs. Fidelity Advisor Financial | Manning Napier vs. Gabelli Global Financial | Manning Napier vs. Mesirow Financial Small | Manning Napier vs. Icon Financial Fund |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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