Correlation Between Icon Information and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Icon Information and Cohen Steers 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 Cohen Steers 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 Cohen Steers Mlp, you can compare the effects of market volatilities on Icon Information and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and Cohen Steers.
Diversification Opportunities for Icon Information and Cohen Steers
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Icon and Cohen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and Cohen Steers Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Mlp 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Mlp has no effect on the direction of Icon Information i.e., Icon Information and Cohen Steers go up and down completely randomly.
Pair Corralation between Icon Information and Cohen Steers
Assuming the 90 days horizon Icon Information Technology is expected to generate 1.05 times more return on investment than Cohen Steers. However, Icon Information is 1.05 times more volatile than Cohen Steers Mlp. It trades about 0.1 of its potential returns per unit of risk. Cohen Steers Mlp is currently generating about 0.09 per unit of risk. If you would invest 1,395 in Icon Information Technology on August 26, 2024 and sell it today you would earn a total of 314.00 from holding Icon Information Technology or generate 22.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Information Technology vs. Cohen Steers Mlp
Performance |
| Timeline |
| Icon Information Tec |
| Cohen Steers Mlp |
Icon Information and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and Cohen Steers
The main advantage of trading using opposite Icon Information and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Icon Information vs. VEEA | Icon Information vs. VivoPower International PLC | Icon Information vs. WEBTOON Entertainment Common | Icon Information vs. Icon Bond Fund |
| Cohen Steers vs. Biotechnology Ultrasector Profund | Cohen Steers vs. Columbia Global Technology | Cohen Steers vs. Icon Information Technology | Cohen Steers vs. Technology Ultrasector Profund |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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