Correlation Between Icon Financial and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Eaton Vance 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 Eaton Vance 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 Eaton Vance Worldwide, you can compare the effects of market volatilities on Icon Financial and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Eaton Vance.
Diversification Opportunities for Icon Financial and Eaton Vance
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Icon and Eaton is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Eaton Vance Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Worldwide 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Worldwide has no effect on the direction of Icon Financial i.e., Icon Financial and Eaton Vance go up and down completely randomly.
Pair Corralation between Icon Financial and Eaton Vance
Assuming the 90 days horizon Icon Financial Fund is expected to generate 0.84 times more return on investment than Eaton Vance. However, Icon Financial Fund is 1.19 times less risky than Eaton Vance. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Worldwide is currently generating about 0.04 per unit of risk. If you would invest 937.00 in Icon Financial Fund on May 29, 2025 and sell it today you would earn a total of 74.00 from holding Icon Financial Fund or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Eaton Vance Worldwide
Performance |
| Timeline |
| Icon Financial |
| Eaton Vance Worldwide |
Icon Financial and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Eaton Vance
The main advantage of trading using opposite Icon Financial and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. Ridgeworth Seix Government | Eaton Vance vs. Short Term Government Fund | Eaton Vance vs. Federated Government Income | Eaton Vance vs. Fidelity Series Government |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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