Correlation Between Icon Natural and Dunham Floating
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Dunham Floating 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 Dunham Floating 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 Dunham Floating Rate, you can compare the effects of market volatilities on Icon Natural and Dunham Floating 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 Dunham Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Dunham Floating.
Diversification Opportunities for Icon Natural and Dunham Floating
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Icon and Dunham is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Dunham Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Floating Rate 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 Dunham Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Floating Rate has no effect on the direction of Icon Natural i.e., Icon Natural and Dunham Floating go up and down completely randomly.
Pair Corralation between Icon Natural and Dunham Floating
Assuming the 90 days horizon Icon Natural Resources is expected to generate 17.6 times more return on investment than Dunham Floating. However, Icon Natural is 17.6 times more volatile than Dunham Floating Rate. It trades about 0.13 of its potential returns per unit of risk. Dunham Floating Rate is currently generating about 0.57 per unit of risk. If you would invest 1,653 in Icon Natural Resources on June 7, 2025 and sell it today you would earn a total of 160.00 from holding Icon Natural Resources or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Natural Resources vs. Dunham Floating Rate
Performance |
| Timeline |
| Icon Natural Resources |
| Dunham Floating Rate |
Icon Natural and Dunham Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Dunham Floating
The main advantage of trading using opposite Icon Natural and Dunham Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Dunham Floating 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 Dunham Floating will offset losses from the drop in Dunham Floating'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 |
| Dunham Floating vs. Lord Abbett Diversified | Dunham Floating vs. Principal Lifetime Hybrid | Dunham Floating vs. Jpmorgan Diversified Fund | Dunham Floating vs. Legg Mason Bw |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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