Correlation Between Huber Capital and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Icon Financial 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 Huber Capital and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Small and Icon Financial Fund, you can compare the effects of market volatilities on Huber Capital and Icon Financial 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 Huber Capital with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Icon Financial.
Diversification Opportunities for Huber Capital and Icon Financial
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huber and Icon is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Small and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Huber Capital 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 Huber Capital Small are associated (or correlated) with Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Huber Capital i.e., Huber Capital and Icon Financial go up and down completely randomly.
Pair Corralation between Huber Capital and Icon Financial
Assuming the 90 days horizon Huber Capital Small is expected to generate 1.14 times more return on investment than Icon Financial. However, Huber Capital is 1.14 times more volatile than Icon Financial Fund. It trades about 0.17 of its potential returns per unit of risk. Icon Financial Fund is currently generating about 0.02 per unit of risk. If you would invest 2,611 in Huber Capital Small on March 31, 2025 and sell it today you would earn a total of 84.00 from holding Huber Capital Small or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Small vs. Icon Financial Fund
Performance |
| Timeline |
| Huber Capital Small |
| Icon Financial |
Huber Capital and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Icon Financial
The main advantage of trading using opposite Huber Capital and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Icon Financial 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 Financial will offset losses from the drop in Icon Financial's long position.| Huber Capital vs. World Energy Fund | Huber Capital vs. Franklin Natural Resources | Huber Capital vs. Icon Natural Resources | Huber Capital vs. Global Resources Fund |
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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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