Correlation Between Icon Natural and Allianzgi Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Allianzgi Technology 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 Natural and Allianzgi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Natural Resources and Allianzgi Technology Fund, you can compare the effects of market volatilities on Icon Natural and Allianzgi Technology 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 Natural with a short position of Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Allianzgi Technology.

Diversification Opportunities for Icon Natural and Allianzgi Technology

IconAllianzgiDiversified AwayIconAllianzgiDiversified Away100%
0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Icon and Allianzgi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology and Icon Natural 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 Natural Resources are associated (or correlated) with Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Icon Natural i.e., Icon Natural and Allianzgi Technology go up and down completely randomly.

Pair Corralation between Icon Natural and Allianzgi Technology

Assuming the 90 days horizon Icon Natural is expected to generate 73.94 times less return on investment than Allianzgi Technology. But when comparing it to its historical volatility, Icon Natural Resources is 1.06 times less risky than Allianzgi Technology. It trades about 0.0 of its potential returns per unit of risk. Allianzgi Technology Fund is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  5,781  in Allianzgi Technology Fund on September 20, 2024 and sell it today you would earn a total of  869.00  from holding Allianzgi Technology Fund or generate 15.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Icon Natural Resources  vs.  Allianzgi Technology Fund

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 051015
JavaScript chart by amCharts 3.21.15ICBAX RAGTX
       Timeline  
Icon Natural Resources 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Icon Natural Resources has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Icon Natural is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec16.51717.51818.5
Allianzgi Technology 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Technology Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Technology showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec585960616263646566

Icon Natural and Allianzgi Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.52-2.64-1.75-0.870.01490.881.782.673.57 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15ICBAX RAGTX
       Returns  

Pair Trading with Icon Natural and Allianzgi Technology

The main advantage of trading using opposite Icon Natural and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Allianzgi Technology 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 Allianzgi Technology will offset losses from the drop in Allianzgi Technology's long position.
The idea behind Icon Natural Resources and Allianzgi Technology Fund 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.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Share Portfolio
Track or share privately all of your investments from the convenience of any device
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios