Correlation Between Icon Information and Voya Us
Can any of the company-specific risk be diversified away by investing in both Icon Information and Voya Us 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 Us 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 Bond Index, you can compare the effects of market volatilities on Icon Information and Voya Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and Voya Us.
Diversification Opportunities for Icon Information and Voya Us
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICON and Voya is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index 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 Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Icon Information i.e., Icon Information and Voya Us go up and down completely randomly.
Pair Corralation between Icon Information and Voya Us
Assuming the 90 days horizon Icon Information Technology is expected to generate 2.49 times more return on investment than Voya Us. However, Icon Information is 2.49 times more volatile than Voya Bond Index. It trades about 0.17 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.02 per unit of risk. If you would invest 1,585 in Icon Information Technology on October 20, 2024 and sell it today you would earn a total of 41.00 from holding Icon Information Technology or generate 2.59% 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. Voya Bond Index
Performance |
| Timeline |
| Icon Information Tec |
| Voya Bond Index |
Icon Information and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and Voya Us
The main advantage of trading using opposite Icon Information and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Icon Information vs. Alpsalerian Energy Infrastructure | Icon Information vs. Invesco Energy Fund | Icon Information vs. Fidelity Advisor Energy | Icon Information vs. Clearbridge Energy Mlp |
| Voya Us vs. Lord Abbett Diversified | Voya Us vs. Davenport Small Cap | Voya Us vs. Stone Ridge Diversified | Voya Us vs. Fulcrum Diversified Absolute |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |