Correlation Between Icon Information and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Icon Information and Natixis Oakmark 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 Natixis Oakmark 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 Natixis Oakmark International, you can compare the effects of market volatilities on Icon Information and Natixis Oakmark 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 Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and Natixis Oakmark.
Diversification Opportunities for Icon Information and Natixis Oakmark
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Natixis is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and Natixis Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Inte 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Inte has no effect on the direction of Icon Information i.e., Icon Information and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Icon Information and Natixis Oakmark
Assuming the 90 days horizon Icon Information Technology is expected to generate 1.0 times more return on investment than Natixis Oakmark. However, Icon Information Technology is 1.0 times less risky than Natixis Oakmark. It trades about 0.04 of its potential returns per unit of risk. Natixis Oakmark International is currently generating about -0.03 per unit of risk. If you would invest 1,542 in Icon Information Technology on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Icon Information Technology or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Information Technology vs. Natixis Oakmark International
Performance |
| Timeline |
| Icon Information Tec |
| Natixis Oakmark Inte |
Icon Information and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and Natixis Oakmark
The main advantage of trading using opposite Icon Information and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information position performs unexpectedly, Natixis Oakmark 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 Natixis Oakmark will offset losses from the drop in Natixis Oakmark's long position.| Icon Information vs. Icon Equity Income | Icon Information vs. Us Vector Equity | Icon Information vs. Balanced Fund Retail | Icon Information vs. Ms Global Fixed |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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