Correlation Between Icon Financial and Wilshire Income

Can any of the company-specific risk be diversified away by investing in both Icon Financial and Wilshire Income 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 Wilshire Income 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 Wilshire Income Opport, you can compare the effects of market volatilities on Icon Financial and Wilshire Income 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 Wilshire Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Wilshire Income.

Diversification Opportunities for Icon Financial and Wilshire Income

0.0

Correlation Coefficient

Icon Financial  Wilshire Income

Pay attention - limited upside

The 3 months correlation between Icon and Wilshire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Wilshire Income Opport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilshire Income Opport 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 Wilshire Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilshire Income Opport has no effect on the direction of Icon Financial i.e., Icon Financial and Wilshire Income go up and down completely randomly.

Pair Corralation between Icon Financial and Wilshire Income

If you would invest  0.00  in Wilshire Income Opport on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Wilshire Income Opport or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Icon Financial Fund  vs.  Wilshire Income Opport

Icon Financial

Risk-Adjusted Performance

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 fairly strong basic indicators, Icon Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Wilshire Income Opport

Risk-Adjusted Performance

Good

Over the last 90 days Wilshire Income Opport has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Wilshire Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Icon Financial and Wilshire Income

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

The idea behind Icon Financial Fund and Wilshire Income Opport 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.