Correlation Between Mid Cap and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Icon Financial Fund, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Icon Financial.
Diversification Opportunities for Mid Cap and Icon Financial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mid and Icon is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Mid Cap 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 Mid Cap Growth 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 Mid Cap i.e., Mid Cap and Icon Financial go up and down completely randomly.
Pair Corralation between Mid Cap and Icon Financial
Assuming the 90 days horizon Mid Cap Growth is expected to generate 1.08 times more return on investment than Icon Financial. However, Mid Cap is 1.08 times more volatile than Icon Financial Fund. It trades about 0.15 of its potential returns per unit of risk. Icon Financial Fund is currently generating about 0.05 per unit of risk. If you would invest 3,415 in Mid Cap Growth on August 29, 2024 and sell it today you would earn a total of 737.00 from holding Mid Cap Growth or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Icon Financial Fund
Performance |
| Timeline |
| Mid Cap Growth |
| Icon Financial |
Mid Cap and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Icon Financial
The main advantage of trading using opposite Mid Cap and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.| Mid Cap vs. Touchstone Sustainability And | Mid Cap vs. Growth Opportunities Fund | Mid Cap vs. Total Return Fund | Mid Cap vs. William Blair International |
| Icon Financial vs. HUMANA INC | Icon Financial vs. Aquagold International | Icon Financial vs. Barloworld Ltd ADR | Icon Financial vs. Morningstar Unconstrained Allocation |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |