Correlation Between Oakhurst Short and Icon Information

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

Diversification Opportunities for Oakhurst Short and Icon Information

OakhurstICONDiversified AwayOakhurstICONDiversified Away100%
-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between Oakhurst and ICON is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Oakhurst Short Duration and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec and Oakhurst Short 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 Oakhurst Short Duration are associated (or correlated) with Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of Oakhurst Short i.e., Oakhurst Short and Icon Information go up and down completely randomly.

Pair Corralation between Oakhurst Short and Icon Information

Assuming the 90 days horizon Oakhurst Short Duration is expected to generate 0.13 times more return on investment than Icon Information. However, Oakhurst Short Duration is 7.44 times less risky than Icon Information. It trades about 0.14 of its potential returns per unit of risk. Icon Information Technology is currently generating about -0.04 per unit of risk. If you would invest  883.00  in Oakhurst Short Duration on October 20, 2024 and sell it today you would earn a total of  12.00  from holding Oakhurst Short Duration or generate 1.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Oakhurst Short Duration  vs.  Icon Information Technology

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -6-4-2024
JavaScript chart by amCharts 3.21.15OHSHX ICTEX
       Timeline  
Oakhurst Short Duration 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Oakhurst Short Duration are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Oakhurst Short 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 3.21.15NovDecJanDecJan8.828.848.868.888.98.928.948.96
Icon Information Tec 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Icon Information Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Icon Information 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 3.21.15NovDecJanDecJan1616.51717.5

Oakhurst Short and Icon Information Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.39-0.19-0.0791-0.0415-0.0019780.03590.07810.190.390.59 51015
JavaScript chart by amCharts 3.21.15OHSHX ICTEX
       Returns  

Pair Trading with Oakhurst Short and Icon Information

The main advantage of trading using opposite Oakhurst Short and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakhurst Short position performs unexpectedly, Icon Information 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 Icon Information will offset losses from the drop in Icon Information's long position.
The idea behind Oakhurst Short Duration and Icon Information Technology 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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