Correlation Between Icon Information and Allianzgi Technology
Can any of the company-specific risk be diversified away by investing in both Icon Information and Allianzgi Technology 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 Information and Allianzgi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Information Technology and Allianzgi Technology Fund, you can compare the effects of market volatilities on Icon Information and Allianzgi Technology 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 Information with a short position of Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and Allianzgi Technology.
Diversification Opportunities for Icon Information and Allianzgi Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Icon and Allianzgi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology and Icon Information 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 Information Technology are associated (or correlated) with Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Icon Information i.e., Icon Information and Allianzgi Technology go up and down completely randomly.
Pair Corralation between Icon Information and Allianzgi Technology
Assuming the 90 days horizon Icon Information is expected to generate 1.23 times less return on investment than Allianzgi Technology. But when comparing it to its historical volatility, Icon Information Technology is 1.18 times less risky than Allianzgi Technology. It trades about 0.14 of its potential returns per unit of risk. Allianzgi Technology Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8,608 in Allianzgi Technology Fund on August 28, 2024 and sell it today you would earn a total of 356.00 from holding Allianzgi Technology Fund or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Information Technology vs. Allianzgi Technology Fund
Performance |
| Timeline |
| Icon Information Tec |
| Allianzgi Technology |
Icon Information and Allianzgi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and Allianzgi Technology
The main advantage of trading using opposite Icon Information and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information position performs unexpectedly, Allianzgi Technology 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 Allianzgi Technology will offset losses from the drop in Allianzgi Technology's long position.| Icon Information vs. VEEA | Icon Information vs. VivoPower International PLC | Icon Information vs. WEBTOON Entertainment Common | Icon Information vs. Icon Bond Fund |
| Allianzgi Technology vs. Goldman Sachs Strategic | Allianzgi Technology vs. Red Oak Technology | Allianzgi Technology vs. Kinetics Internet Fund | Allianzgi Technology vs. Tomorrows Scholar College |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |