Correlation Between Westwood Alternative and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Westwood Alternative 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 Westwood Alternative and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westwood Alternative Income and Icon Financial Fund, you can compare the effects of market volatilities on Westwood Alternative 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 Westwood Alternative with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westwood Alternative and Icon Financial.
Diversification Opportunities for Westwood Alternative and Icon Financial
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Westwood and Icon is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Westwood Alternative Income and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Westwood Alternative 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 Westwood Alternative Income 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 Westwood Alternative i.e., Westwood Alternative and Icon Financial go up and down completely randomly.
Pair Corralation between Westwood Alternative and Icon Financial
Assuming the 90 days horizon Westwood Alternative Income is expected to generate 0.02 times more return on investment than Icon Financial. However, Westwood Alternative Income is 50.48 times less risky than Icon Financial. It trades about 0.37 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.17 per unit of risk. If you would invest 967.00 in Westwood Alternative Income on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Westwood Alternative Income or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westwood Alternative Income vs. Icon Financial Fund
Performance |
| Timeline |
| Westwood Alternative |
| Icon Financial |
Westwood Alternative and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westwood Alternative and Icon Financial
The main advantage of trading using opposite Westwood Alternative and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westwood Alternative 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.| Westwood Alternative vs. Jpmorgan Smartretirement 2035 | Westwood Alternative vs. Qs Moderate Growth | Westwood Alternative vs. Dimensional Retirement Income | Westwood Alternative vs. Sierra E Retirement |
| Icon Financial vs. Science Technology Fund | Icon Financial vs. Goldman Sachs Technology | Icon Financial vs. Allianzgi Technology Fund | Icon Financial vs. Janus Global Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |