Correlation Between Icon Natural and Global Social
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Global Social 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 Global Social 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 Global Social Awareness, you can compare the effects of market volatilities on Icon Natural and Global Social 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 Global Social. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Global Social.
Diversification Opportunities for Icon Natural and Global Social
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Icon and Global is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Global Social Awareness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Social Awareness 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 Global Social. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Social Awareness has no effect on the direction of Icon Natural i.e., Icon Natural and Global Social go up and down completely randomly.
Pair Corralation between Icon Natural and Global Social
Assuming the 90 days horizon Icon Natural is expected to generate 1.12 times less return on investment than Global Social. In addition to that, Icon Natural is 1.53 times more volatile than Global Social Awareness. It trades about 0.03 of its total potential returns per unit of risk. Global Social Awareness is currently generating about 0.05 per unit of volatility. If you would invest 2,390 in Global Social Awareness on May 30, 2025 and sell it today you would earn a total of 447.00 from holding Global Social Awareness or generate 18.7% 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. Global Social Awareness
Performance |
| Timeline |
| Icon Natural Resources |
| Global Social Awareness |
Icon Natural and Global Social Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Global Social
The main advantage of trading using opposite Icon Natural and Global Social positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Global Social 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 Global Social will offset losses from the drop in Global Social'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 |
| Global Social vs. Putnam Diversified Income | Global Social vs. Brown Advisory Small Cap | Global Social vs. Fuller Thaler Behavioral | Global Social 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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