Correlation Between Icon Financial and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Mainstay Cushing 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 Mainstay Cushing 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 Mainstay Cushing Mlp, you can compare the effects of market volatilities on Icon Financial and Mainstay Cushing 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 Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Mainstay Cushing.
Diversification Opportunities for Icon Financial and Mainstay Cushing
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icon and Mainstay is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp 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 Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Icon Financial i.e., Icon Financial and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Icon Financial and Mainstay Cushing
Assuming the 90 days horizon Icon Financial is expected to generate 6.48 times less return on investment than Mainstay Cushing. In addition to that, Icon Financial is 1.19 times more volatile than Mainstay Cushing Mlp. It trades about 0.01 of its total potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.11 per unit of volatility. If you would invest 700.00 in Mainstay Cushing Mlp on September 26, 2024 and sell it today you would earn a total of 451.00 from holding Mainstay Cushing Mlp or generate 64.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Icon Financial Fund vs. Mainstay Cushing Mlp
Performance |
Timeline |
Icon Financial |
Mainstay Cushing Mlp |
Icon Financial and Mainstay Cushing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Icon Financial and Mainstay Cushing
The main advantage of trading using opposite Icon Financial and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Mainstay Cushing 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 Mainstay Cushing will offset losses from the drop in Mainstay Cushing's long position.Icon Financial vs. Morningstar Unconstrained Allocation | Icon Financial vs. Alternative Asset Allocation | Icon Financial vs. T Rowe Price | Icon Financial vs. Touchstone Large Cap |
Mainstay Cushing vs. Goldman Sachs Financial | Mainstay Cushing vs. Angel Oak Financial | Mainstay Cushing vs. Icon Financial Fund | Mainstay Cushing vs. John Hancock Financial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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