Correlation Between Icon Financial and Guidepath Income
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Guidepath Income 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 Guidepath Income 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 Guidepath Income, you can compare the effects of market volatilities on Icon Financial and Guidepath Income 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 Guidepath Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Guidepath Income.
Diversification Opportunities for Icon Financial and Guidepath Income
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Icon and Guidepath is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Guidepath Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Income 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 Guidepath Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Income has no effect on the direction of Icon Financial i.e., Icon Financial and Guidepath Income go up and down completely randomly.
Pair Corralation between Icon Financial and Guidepath Income
Assuming the 90 days horizon Icon Financial Fund is expected to generate 3.65 times more return on investment than Guidepath Income. However, Icon Financial is 3.65 times more volatile than Guidepath Income. It trades about 0.18 of its potential returns per unit of risk. Guidepath Income is currently generating about 0.01 per unit of risk. If you would invest 878.00 in Icon Financial Fund on April 29, 2025 and sell it today you would earn a total of 96.00 from holding Icon Financial Fund or generate 10.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Guidepath Income
Performance |
| Timeline |
| Icon Financial |
| Guidepath Income |
Icon Financial and Guidepath Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Guidepath Income
The main advantage of trading using opposite Icon Financial and Guidepath Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Guidepath Income 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 Guidepath Income will offset losses from the drop in Guidepath Income's long position.| Icon Financial vs. Icon Bond Fund | Icon Financial vs. Icon Bond Fund | Icon Financial vs. Icon Equity Income | Icon Financial vs. Icon Longshort Fund |
| Guidepath Income vs. Maryland Short Term Tax Free | Guidepath Income vs. Ab Select Longshort | Guidepath Income vs. American Funds Tax Exempt | Guidepath Income vs. Blackrock Global Longshort |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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