Correlation Between Icon Financial and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Calamos Dividend 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 Calamos Dividend 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 Calamos Dividend Growth, you can compare the effects of market volatilities on Icon Financial and Calamos Dividend 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 Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Calamos Dividend.
Diversification Opportunities for Icon Financial and Calamos Dividend
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Icon and Calamos is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth 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 Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Icon Financial i.e., Icon Financial and Calamos Dividend go up and down completely randomly.
Pair Corralation between Icon Financial and Calamos Dividend
Assuming the 90 days horizon Icon Financial Fund is expected to generate 0.91 times more return on investment than Calamos Dividend. However, Icon Financial Fund is 1.1 times less risky than Calamos Dividend. It trades about -0.04 of its potential returns per unit of risk. Calamos Dividend Growth is currently generating about -0.06 per unit of risk. If you would invest 990.00 in Icon Financial Fund on December 2, 2024 and sell it today you would lose (24.00) from holding Icon Financial Fund or give up 2.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Icon Financial Fund vs. Calamos Dividend Growth
Performance |
Timeline |
Icon Financial |
Calamos Dividend Growth |
Icon Financial and Calamos Dividend Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Icon Financial and Calamos Dividend
The main advantage of trading using opposite Icon Financial and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Calamos Dividend 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 Calamos Dividend will offset losses from the drop in Calamos Dividend's long position.Icon Financial vs. Praxis Impact Bond | Icon Financial vs. Calvert Bond Portfolio | Icon Financial vs. Goldman Sachs Bond | Icon Financial vs. Jhvit Core Bond |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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