Correlation Between Icon Financial and Siit High
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Siit 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 Siit 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 Siit High Yield, you can compare the effects of market volatilities on Icon Financial and Siit 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 Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Siit High.
Diversification Opportunities for Icon Financial and Siit High
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and Siit is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit 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 Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Icon Financial i.e., Icon Financial and Siit High go up and down completely randomly.
Pair Corralation between Icon Financial and Siit High
Assuming the 90 days horizon Icon Financial is expected to generate 78.25 times less return on investment than Siit High. In addition to that, Icon Financial is 3.48 times more volatile than Siit High Yield. It trades about 0.0 of its total potential returns per unit of risk. Siit High Yield is currently generating about 0.1 per unit of volatility. If you would invest 610.00 in Siit High Yield on October 16, 2024 and sell it today you would earn a total of 100.00 from holding Siit High Yield or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Siit High Yield
Performance |
| Timeline |
| Icon Financial |
| Siit High Yield |
Icon Financial and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Siit High
The main advantage of trading using opposite Icon Financial and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Siit 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 Siit High will offset losses from the drop in Siit High's long position.| Icon Financial vs. Barings High Yield | Icon Financial vs. Siit High Yield | Icon Financial vs. Lgm Risk Managed | Icon Financial vs. Msift High Yield |
| Siit High vs. Prudential Financial Services | Siit High vs. Icon Financial Fund | Siit High vs. Goldman Sachs Financial | Siit High vs. Putnam Global Financials |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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