Correlation Between Icon Financial and Clearbridge Energy
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Clearbridge Energy 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 Clearbridge Energy 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 Clearbridge Energy Mlp, you can compare the effects of market volatilities on Icon Financial and Clearbridge Energy 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 Clearbridge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Clearbridge Energy.
Diversification Opportunities for Icon Financial and Clearbridge Energy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Clearbridge is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Clearbridge Energy Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Energy Mlp 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 Clearbridge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Energy Mlp has no effect on the direction of Icon Financial i.e., Icon Financial and Clearbridge Energy go up and down completely randomly.
Pair Corralation between Icon Financial and Clearbridge Energy
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Clearbridge Energy. In addition to that, Icon Financial is 1.63 times more volatile than Clearbridge Energy Mlp. It trades about -0.07 of its total potential returns per unit of risk. Clearbridge Energy Mlp is currently generating about 0.22 per unit of volatility. If you would invest 4,855 in Clearbridge Energy Mlp on October 25, 2024 and sell it today you would earn a total of 890.00 from holding Clearbridge Energy Mlp or generate 18.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Clearbridge Energy Mlp
Performance |
| Timeline |
| Icon Financial |
| Clearbridge Energy Mlp |
Icon Financial and Clearbridge Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Clearbridge Energy
The main advantage of trading using opposite Icon Financial and Clearbridge Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Clearbridge Energy 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 Clearbridge Energy will offset losses from the drop in Clearbridge Energy's long position.| Icon Financial vs. Vanguard Money Market | Icon Financial vs. Aig Government Money | Icon Financial vs. Blackrock Exchange Portfolio | Icon Financial vs. Putnam Money Market |
| Clearbridge Energy vs. Vy Goldman Sachs | Clearbridge Energy vs. Oppenheimer Gold Special | Clearbridge Energy vs. Global Gold Fund | Clearbridge Energy vs. Wells Fargo Advantage |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |