Correlation Between Icon Financial and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Horizon Active 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 Financial and Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Financial Fund and Horizon Active Risk, you can compare the effects of market volatilities on Icon Financial and Horizon Active 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 Financial with a short position of Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Horizon Active.
Diversification Opportunities for Icon Financial and Horizon Active
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Icon and Horizon is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Horizon Active Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Risk and Icon Financial 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 Financial Fund are associated (or correlated) with Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Risk has no effect on the direction of Icon Financial i.e., Icon Financial and Horizon Active go up and down completely randomly.
Pair Corralation between Icon Financial and Horizon Active
Assuming the 90 days horizon Icon Financial is expected to generate 1.05 times less return on investment than Horizon Active. In addition to that, Icon Financial is 1.38 times more volatile than Horizon Active Risk. It trades about 0.14 of its total potential returns per unit of risk. Horizon Active Risk is currently generating about 0.21 per unit of volatility. If you would invest 2,450 in Horizon Active Risk on June 13, 2025 and sell it today you would earn a total of 189.00 from holding Horizon Active Risk or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Horizon Active Risk
Performance |
| Timeline |
| Icon Financial |
| Horizon Active Risk |
Icon Financial and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Horizon Active
The main advantage of trading using opposite Icon Financial and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Icon Financial vs. Icon Bond Fund | Icon Financial vs. Icon Bond Fund | Icon Financial vs. Icon Longshort Fund | Icon Financial vs. Icon Longshort Fund |
| Horizon Active vs. Nt International Small Mid | Horizon Active vs. Siit Small Cap | Horizon Active vs. Smallcap Fund Fka | Horizon Active vs. Touchstone 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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