Correlation Between Icon Financial and Guggenheim High
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Guggenheim 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 Guggenheim 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 Guggenheim High Yield, you can compare the effects of market volatilities on Icon Financial and Guggenheim 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 Guggenheim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Guggenheim High.
Diversification Opportunities for Icon Financial and Guggenheim High
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Guggenheim is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Guggenheim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim 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 Guggenheim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim High Yield has no effect on the direction of Icon Financial i.e., Icon Financial and Guggenheim High go up and down completely randomly.
Pair Corralation between Icon Financial and Guggenheim High
Assuming the 90 days horizon Icon Financial is expected to generate 52.83 times less return on investment than Guggenheim High. In addition to that, Icon Financial is 4.39 times more volatile than Guggenheim High Yield. It trades about 0.0 of its total potential returns per unit of risk. Guggenheim High Yield is currently generating about 0.12 per unit of volatility. If you would invest 692.00 in Guggenheim High Yield on October 15, 2024 and sell it today you would earn a total of 116.00 from holding Guggenheim High Yield or generate 16.76% 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. Guggenheim High Yield
Performance |
| Timeline |
| Icon Financial |
| Guggenheim High Yield |
Icon Financial and Guggenheim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Guggenheim High
The main advantage of trading using opposite Icon Financial and Guggenheim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Guggenheim 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 Guggenheim High will offset losses from the drop in Guggenheim 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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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