Correlation Between Icon Financial and Voya Target
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Voya Target 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 Voya Target 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 Voya Target Retirement, you can compare the effects of market volatilities on Icon Financial and Voya Target 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 Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Voya Target.
Diversification Opportunities for Icon Financial and Voya Target
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Icon and Voya is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement 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 Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Icon Financial i.e., Icon Financial and Voya Target go up and down completely randomly.
Pair Corralation between Icon Financial and Voya Target
Assuming the 90 days horizon Icon Financial Fund is expected to generate 1.36 times more return on investment than Voya Target. However, Icon Financial is 1.36 times more volatile than Voya Target Retirement. It trades about 0.01 of its potential returns per unit of risk. Voya Target Retirement is currently generating about -0.02 per unit of risk. If you would invest 986.00 in Icon Financial Fund on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Icon Financial Fund or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Voya Target Retirement
Performance |
| Timeline |
| Icon Financial |
| Voya Target Retirement |
Icon Financial and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Voya Target
The main advantage of trading using opposite Icon Financial and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Voya Target 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 Voya Target will offset losses from the drop in Voya Target's long position.| Icon Financial vs. Nuveen Missouri Municipal | Icon Financial vs. Ab Bond Inflation | Icon Financial vs. Ab Bond Inflation | Icon Financial vs. Artisan High Income |
| Voya Target vs. Mesirow Financial High | Voya Target vs. Pace High Yield | Voya Target vs. Transamerica High Yield | Voya Target vs. Siit High Yield |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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