Correlation Between Icon Information and American Beacon
Can any of the company-specific risk be diversified away by investing in both Icon Information and American Beacon 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 Beacon 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 Beacon Glg, you can compare the effects of market volatilities on Icon Information and American Beacon 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 Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and American Beacon.
Diversification Opportunities for Icon Information and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Icon and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and American Beacon Glg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Glg 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 Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Glg has no effect on the direction of Icon Information i.e., Icon Information and American Beacon go up and down completely randomly.
Pair Corralation between Icon Information and American Beacon
If you would invest (100.00) in American Beacon Glg on September 13, 2024 and sell it today you would earn a total of 100.00 from holding American Beacon Glg or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Icon Information Technology vs. American Beacon Glg
Performance |
| Timeline |
| Icon Information Tec |
| American Beacon Glg |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Icon Information and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and American Beacon
The main advantage of trading using opposite Icon Information and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information position performs unexpectedly, American Beacon 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 Beacon will offset losses from the drop in American Beacon's long position.| Icon Information vs. Artisan High Income | Icon Information vs. Ab Global Risk | Icon Information vs. Metropolitan West High | Icon Information vs. Needham Aggressive Growth |
| American Beacon vs. Fidelity Advisor Technology | American Beacon vs. Icon Information Technology | American Beacon vs. Firsthand Technology Opportunities | American Beacon vs. Science Technology Fund |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |