Correlation Between Icon Information and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Icon Information and Voya Intermediate 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 Voya Intermediate 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 Voya Intermediate Bond, you can compare the effects of market volatilities on Icon Information and Voya Intermediate 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 Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and Voya Intermediate.
Diversification Opportunities for Icon Information and Voya Intermediate
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Voya is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond 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 Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Icon Information i.e., Icon Information and Voya Intermediate go up and down completely randomly.
Pair Corralation between Icon Information and Voya Intermediate
Assuming the 90 days horizon Icon Information Technology is expected to under-perform the Voya Intermediate. In addition to that, Icon Information is 4.32 times more volatile than Voya Intermediate Bond. It trades about -0.01 of its total potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.09 per unit of volatility. If you would invest 872.00 in Voya Intermediate Bond on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Voya Intermediate Bond or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Icon Information Technology vs. Voya Intermediate Bond
Performance |
| Timeline |
| Icon Information Tec |
| Voya Intermediate Bond |
Icon Information and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and Voya Intermediate
The main advantage of trading using opposite Icon Information and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information position performs unexpectedly, Voya Intermediate 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 Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Icon Information vs. World Energy Fund | Icon Information vs. Hennessy Bp Energy | Icon Information vs. Alpsalerian Energy Infrastructure | Icon Information vs. Dreyfus Natural Resources |
| Voya Intermediate vs. Fidelity Advisor Technology | Voya Intermediate vs. Icon Information Technology | Voya Intermediate vs. Blackrock Science Technology | Voya Intermediate vs. Mfs 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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