Correlation Between Icon Natural and Alger Midcap
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Alger Midcap 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 Natural and Alger Midcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Natural Resources and Alger Midcap Growth, you can compare the effects of market volatilities on Icon Natural and Alger Midcap 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 Natural with a short position of Alger Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Alger Midcap.
Diversification Opportunities for Icon Natural and Alger Midcap
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Icon and Alger is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Alger Midcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Midcap Growth and Icon Natural 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 Natural Resources are associated (or correlated) with Alger Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Midcap Growth has no effect on the direction of Icon Natural i.e., Icon Natural and Alger Midcap go up and down completely randomly.
Pair Corralation between Icon Natural and Alger Midcap
Assuming the 90 days horizon Icon Natural Resources is expected to generate 1.38 times more return on investment than Alger Midcap. However, Icon Natural is 1.38 times more volatile than Alger Midcap Growth. It trades about 0.13 of its potential returns per unit of risk. Alger Midcap Growth is currently generating about 0.11 per unit of risk. If you would invest 1,779 in Icon Natural Resources on July 24, 2025 and sell it today you would earn a total of 205.00 from holding Icon Natural Resources or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Icon Natural Resources vs. Alger Midcap Growth
Performance |
| Timeline |
| Icon Natural Resources |
| Alger Midcap Growth |
Icon Natural and Alger Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Alger Midcap
The main advantage of trading using opposite Icon Natural and Alger Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Alger Midcap 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 Alger Midcap will offset losses from the drop in Alger Midcap's long position.| Icon Natural vs. Alger Midcap Growth | Icon Natural vs. T Rowe Price | Icon Natural vs. Biotechnology Ultrasector Profund | Icon Natural vs. Saat Aggressive Strategy |
| Alger Midcap vs. Alger Midcap Growth | Alger Midcap vs. Alger Midcap Growth | Alger Midcap vs. Alger Mid Cap | Alger Midcap vs. Alger Small Cap |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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