Correlation Between Icon Financial and Dreyfusthe Boston

Can any of the company-specific risk be diversified away by investing in both Icon Financial and Dreyfusthe Boston 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 Financial and Dreyfusthe Boston into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Icon Financial Fund and Dreyfusthe Boston Pany, you can compare the effects of market volatilities on Icon Financial and Dreyfusthe Boston 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 Financial with a short position of Dreyfusthe Boston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Dreyfusthe Boston.

Diversification Opportunities for Icon Financial and Dreyfusthe Boston

-0.33

Correlation Coefficient

Icon Financial  Dreyfusthe Boston

Very good diversification

The 3 months correlation between Icon and Dreyfusthe is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Dreyfusthe Boston Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusthe Boston Pany and Icon Financial 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 Financial Fund are associated (or correlated) with Dreyfusthe Boston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusthe Boston Pany has no effect on the direction of Icon Financial i.e., Icon Financial and Dreyfusthe Boston go up and down completely randomly.

Pair Corralation between Icon Financial and Dreyfusthe Boston

Assuming the 90 days horizon Icon Financial is expected to generate 3.84 times less return on investment than Dreyfusthe Boston. But when comparing it to its historical volatility, Icon Financial Fund is 1.06 times less risky than Dreyfusthe Boston. It trades about 0.01 of its potential returns per unit of risk. Dreyfusthe Boston Pany is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,148  in Dreyfusthe Boston Pany on September 26, 2024 and sell it today you would earn a total of  988.00  from holding Dreyfusthe Boston Pany or generate 31.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Icon Financial Fund  vs.  Dreyfusthe Boston Pany

Icon Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Icon Financial Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Dreyfusthe Boston Pany

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfusthe Boston Pany are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Dreyfusthe Boston may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Icon Financial and Dreyfusthe Boston

The main advantage of trading using opposite Icon Financial and Dreyfusthe Boston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Dreyfusthe Boston 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 Dreyfusthe Boston will offset losses from the drop in Dreyfusthe Boston's long position.

The idea behind Icon Financial Fund and Dreyfusthe Boston Pany pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.