Correlation Between Icon Financial and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Alliancebernstein 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 Alliancebernstein 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 Alliancebernstein Global Highome, you can compare the effects of market volatilities on Icon Financial and Alliancebernstein 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 Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Alliancebernstein.
Diversification Opportunities for Icon Financial and Alliancebernstein
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Icon and Alliancebernstein is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Alliancebernstein Global Higho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein 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 Alliancebernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliancebernstein has no effect on the direction of Icon Financial i.e., Icon Financial and Alliancebernstein go up and down completely randomly.
Pair Corralation between Icon Financial and Alliancebernstein
Assuming the 90 days horizon Icon Financial Fund is expected to generate 3.6 times more return on investment than Alliancebernstein. However, Icon Financial is 3.6 times more volatile than Alliancebernstein Global Highome. It trades about 0.13 of its potential returns per unit of risk. Alliancebernstein Global Highome is currently generating about 0.06 per unit of risk. If you would invest 948.00 in Icon Financial Fund on October 20, 2024 and sell it today you would earn a total of 19.00 from holding Icon Financial Fund or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Alliancebernstein Global Higho
Performance |
| Timeline |
| Icon Financial |
| Alliancebernstein |
Icon Financial and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Alliancebernstein
The main advantage of trading using opposite Icon Financial and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Alliancebernstein 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 Alliancebernstein will offset losses from the drop in Alliancebernstein's long position.| Icon Financial vs. Champlain Small | Icon Financial vs. Praxis Small Cap | Icon Financial vs. Ab Small Cap | Icon Financial vs. Glg Intl Small |
| Alliancebernstein vs. Icon Financial Fund | Alliancebernstein vs. Putnam Global Financials | Alliancebernstein vs. Blackstone Secured Lending | Alliancebernstein vs. Goldman Sachs Financial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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