Correlation Between Catalyst/millburn and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Catalyst/millburn and Icon Financial 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 Catalyst/millburn and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystmillburn Hedge Strategy and Icon Financial Fund, you can compare the effects of market volatilities on Catalyst/millburn and Icon Financial 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 Catalyst/millburn with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/millburn and Icon Financial.
Diversification Opportunities for Catalyst/millburn and Icon Financial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Catalyst/millburn and Icon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmillburn Hedge Strateg and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Catalyst/millburn 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 Catalystmillburn Hedge Strategy are associated (or correlated) with Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Catalyst/millburn i.e., Catalyst/millburn and Icon Financial go up and down completely randomly.
Pair Corralation between Catalyst/millburn and Icon Financial
Assuming the 90 days horizon Catalystmillburn Hedge Strategy is expected to generate 0.96 times more return on investment than Icon Financial. However, Catalystmillburn Hedge Strategy is 1.04 times less risky than Icon Financial. It trades about -0.15 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.18 per unit of risk. If you would invest 4,051 in Catalystmillburn Hedge Strategy on October 9, 2024 and sell it today you would lose (102.00) from holding Catalystmillburn Hedge Strategy or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystmillburn Hedge Strateg vs. Icon Financial Fund
Performance |
| Timeline |
| Catalystmillburn Hedge |
| Icon Financial |
Catalyst/millburn and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/millburn and Icon Financial
The main advantage of trading using opposite Catalyst/millburn and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/millburn position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Catalyst/millburn vs. Smallcap World Fund | Catalyst/millburn vs. Ab Select Equity | Catalyst/millburn vs. Scharf Fund Retail | Catalyst/millburn vs. Monteagle Enhanced Equity |
| Icon Financial vs. Mesirow Financial High | Icon Financial vs. Inverse High Yield | Icon Financial vs. Msift High Yield | Icon Financial vs. Americafirst Monthly Risk On |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |