Correlation Between Icon Financial and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Nuveen Minnesota 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 Nuveen Minnesota 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 Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Icon Financial and Nuveen Minnesota 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 Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Nuveen Minnesota.
Diversification Opportunities for Icon Financial and Nuveen Minnesota
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Nuveen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun 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 Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Icon Financial i.e., Icon Financial and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Icon Financial and Nuveen Minnesota
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Nuveen Minnesota. In addition to that, Icon Financial is 8.95 times more volatile than Nuveen Minnesota Municipal. It trades about -0.04 of its total potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about 0.1 per unit of volatility. If you would invest 1,075 in Nuveen Minnesota Municipal on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Nuveen Minnesota Municipal or generate 1.4% 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. Nuveen Minnesota Municipal
Performance |
| Timeline |
| Icon Financial |
| Nuveen Minnesota Mun |
Icon Financial and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Nuveen Minnesota
The main advantage of trading using opposite Icon Financial and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Nuveen Minnesota 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 Nuveen Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Icon Financial vs. Nuveen Minnesota Municipal | Icon Financial vs. Ishares Municipal Bond | Icon Financial vs. Ab Impact Municipal | Icon Financial vs. California High Yield Municipal |
| Nuveen Minnesota vs. Franklin Minnesota Tax Free | Nuveen Minnesota vs. Franklin Minnesota Tax Free | Nuveen Minnesota vs. Columbia Minnesota Tax Exempt | Nuveen Minnesota vs. Columbia Minnesota Tax Exempt |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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