Correlation Between Icon Healthcare and Health Biotchnology
Can any of the company-specific risk be diversified away by investing in both Icon Healthcare and Health Biotchnology 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 Healthcare and Health Biotchnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Healthcare Fund and Health Biotchnology Portfolio, you can compare the effects of market volatilities on Icon Healthcare and Health Biotchnology 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 Healthcare with a short position of Health Biotchnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Healthcare and Health Biotchnology.
Diversification Opportunities for Icon Healthcare and Health Biotchnology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Icon and Health is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Icon Healthcare Fund and Health Biotchnology Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health Biotchnology and Icon Healthcare 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 Healthcare Fund are associated (or correlated) with Health Biotchnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Biotchnology has no effect on the direction of Icon Healthcare i.e., Icon Healthcare and Health Biotchnology go up and down completely randomly.
Pair Corralation between Icon Healthcare and Health Biotchnology
If you would invest 2,188 in Health Biotchnology Portfolio on September 3, 2024 and sell it today you would earn a total of 277.00 from holding Health Biotchnology Portfolio or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Icon Healthcare Fund vs. Health Biotchnology Portfolio
Performance |
| Timeline |
| Icon Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Health Biotchnology |
Icon Healthcare and Health Biotchnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Healthcare and Health Biotchnology
The main advantage of trading using opposite Icon Healthcare and Health Biotchnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Healthcare position performs unexpectedly, Health Biotchnology 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 Health Biotchnology will offset losses from the drop in Health Biotchnology's long position.| Icon Healthcare vs. Tfa Alphagen Growth | Icon Healthcare vs. Mid Cap Growth | Icon Healthcare vs. Eip Growth And | Icon Healthcare vs. L Abbett Growth |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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