Correlation Between Icon Bond and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Icon Bond and Bbh 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 Bond and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Bond Fund and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Icon Bond and Bbh 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 Bond with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Bond and Bbh Intermediate.
Diversification Opportunities for Icon Bond and Bbh Intermediate
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICON and Bbh is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Icon Bond Fund and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Icon Bond 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 Bond Fund are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Icon Bond i.e., Icon Bond and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Icon Bond and Bbh Intermediate
Assuming the 90 days horizon Icon Bond is expected to generate 3.36 times less return on investment than Bbh Intermediate. But when comparing it to its historical volatility, Icon Bond Fund is 1.69 times less risky than Bbh Intermediate. It trades about 0.08 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,029 in Bbh Intermediate Municipal on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Bbh Intermediate Municipal or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Bond Fund vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Icon Bond Fund |
| Bbh Intermediate Mun |
Icon Bond and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Bond and Bbh Intermediate
The main advantage of trading using opposite Icon Bond and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Bond position performs unexpectedly, Bbh 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Icon Bond vs. Delaware Limited Term Diversified | Icon Bond vs. Principal Lifetime Hybrid | Icon Bond vs. Wasatch Small Cap | Icon Bond vs. Massmutual Premier Diversified |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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