Correlation Between Icon Information and American Funds
Can any of the company-specific risk be diversified away by investing in both Icon Information and American Funds 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 American Funds 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 American Funds Government, you can compare the effects of market volatilities on Icon Information and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and American Funds.
Diversification Opportunities for Icon Information and American Funds
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Icon and American is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and American Funds Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Government 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Government has no effect on the direction of Icon Information i.e., Icon Information and American Funds go up and down completely randomly.
Pair Corralation between Icon Information and American Funds
Assuming the 90 days horizon Icon Information Technology is expected to generate 2.66 times more return on investment than American Funds. However, Icon Information is 2.66 times more volatile than American Funds Government. It trades about 0.15 of its potential returns per unit of risk. American Funds Government is currently generating about 0.1 per unit of risk. If you would invest 1,624 in Icon Information Technology on October 25, 2024 and sell it today you would earn a total of 38.00 from holding Icon Information Technology or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Information Technology vs. American Funds Government
Performance |
| Timeline |
| Icon Information Tec |
| American Funds Government |
Icon Information and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and American Funds
The main advantage of trading using opposite Icon Information and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Icon Information vs. Hartford Moderate Allocation | Icon Information vs. Transamerica Cleartrack Retirement | Icon Information vs. Calvert Moderate Allocation | Icon Information vs. Jp Morgan Smartretirement |
| American Funds vs. Tax Managed Mid Small | American Funds vs. Franklin Small Cap | American Funds vs. Astoncrosswind Small Cap | American Funds vs. Kinetics Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |