Correlation Between Icon Natural and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Fidelity Freedom 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 Fidelity Freedom 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 Fidelity Freedom Blend, you can compare the effects of market volatilities on Icon Natural and Fidelity Freedom 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 Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Fidelity Freedom.
Diversification Opportunities for Icon Natural and Fidelity Freedom
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Icon and Fidelity is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend 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 Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of Icon Natural i.e., Icon Natural and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Icon Natural and Fidelity Freedom
Assuming the 90 days horizon Icon Natural Resources is expected to generate 2.18 times more return on investment than Fidelity Freedom. However, Icon Natural is 2.18 times more volatile than Fidelity Freedom Blend. It trades about 0.17 of its potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.19 per unit of risk. If you would invest 1,614 in Icon Natural Resources on June 4, 2025 and sell it today you would earn a total of 219.00 from holding Icon Natural Resources or generate 13.57% 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. Fidelity Freedom Blend
Performance |
| Timeline |
| Icon Natural Resources |
| Fidelity Freedom Blend |
Icon Natural and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Fidelity Freedom
The main advantage of trading using opposite Icon Natural and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Fidelity Freedom 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 Fidelity Freedom will offset losses from the drop in Fidelity Freedom'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 |
| Fidelity Freedom vs. Jpmorgan Diversified Fund | Fidelity Freedom vs. Jpmorgan Diversified Fund | Fidelity Freedom vs. Voya Solution Conservative | Fidelity Freedom vs. Lord Abbett Diversified |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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