Correlation Between Icon Natural and Calvert High
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Calvert High 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 Calvert High 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 Calvert High Yield, you can compare the effects of market volatilities on Icon Natural and Calvert High 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 Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Calvert High.
Diversification Opportunities for Icon Natural and Calvert High
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Icon and Calvert is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield 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 Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of Icon Natural i.e., Icon Natural and Calvert High go up and down completely randomly.
Pair Corralation between Icon Natural and Calvert High
Assuming the 90 days horizon Icon Natural Resources is expected to generate 8.86 times more return on investment than Calvert High. However, Icon Natural is 8.86 times more volatile than Calvert High Yield. It trades about 0.19 of its potential returns per unit of risk. Calvert High Yield is currently generating about 0.27 per unit of risk. If you would invest 1,582 in Icon Natural Resources on June 1, 2025 and sell it today you would earn a total of 253.00 from holding Icon Natural Resources or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Natural Resources vs. Calvert High Yield
Performance |
| Timeline |
| Icon Natural Resources |
| Calvert High Yield |
Icon Natural and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Calvert High
The main advantage of trading using opposite Icon Natural and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Calvert High 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 Calvert High will offset losses from the drop in Calvert High's long position.| Icon Natural vs. Icon Financial Fund | Icon Natural vs. Dreyfus Natural Resources | Icon Natural vs. Icon Natural Resources | Icon Natural vs. Icon Information Technology |
| Calvert High vs. Ambrus Core Bond | Calvert High vs. Gmo E Plus | Calvert High vs. T Rowe Price | Calvert High vs. Morningstar Defensive Bond |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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