Correlation Between Icon Financial and Oberweis Micro
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Oberweis Micro 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 Oberweis Micro 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 Oberweis Micro Cap Fund, you can compare the effects of market volatilities on Icon Financial and Oberweis Micro 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 Oberweis Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Oberweis Micro.
Diversification Opportunities for Icon Financial and Oberweis Micro
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Oberweis is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Oberweis Micro Cap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Micro Cap 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 Oberweis Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Micro Cap has no effect on the direction of Icon Financial i.e., Icon Financial and Oberweis Micro go up and down completely randomly.
Pair Corralation between Icon Financial and Oberweis Micro
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Oberweis Micro. In addition to that, Icon Financial is 1.06 times more volatile than Oberweis Micro Cap Fund. It trades about -0.02 of its total potential returns per unit of risk. Oberweis Micro Cap Fund is currently generating about 0.09 per unit of volatility. If you would invest 4,175 in Oberweis Micro Cap Fund on September 12, 2024 and sell it today you would earn a total of 708.00 from holding Oberweis Micro Cap Fund or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Icon Financial Fund vs. Oberweis Micro Cap Fund
Performance |
| Timeline |
| Icon Financial |
| Oberweis Micro Cap |
Icon Financial and Oberweis Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Oberweis Micro
The main advantage of trading using opposite Icon Financial and Oberweis Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Oberweis Micro 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 Oberweis Micro will offset losses from the drop in Oberweis Micro's long position.| Icon Financial vs. T Rowe Price | Icon Financial vs. Rational Defensive Growth | Icon Financial vs. Franklin Growth Opportunities | Icon Financial vs. Smallcap Growth Fund |
| Oberweis Micro vs. Fidelity Advisor Financial | Oberweis Micro vs. Transamerica Financial Life | Oberweis Micro vs. Icon Financial Fund | Oberweis Micro vs. 1919 Financial Services |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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