Correlation Between Icon Financial and Putnam Minnesota
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Putnam Minnesota 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 Putnam Minnesota 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 Putnam Minnesota Tax, you can compare the effects of market volatilities on Icon Financial and Putnam Minnesota 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 Putnam Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Putnam Minnesota.
Diversification Opportunities for Icon Financial and Putnam Minnesota
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Putnam is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Putnam Minnesota Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Minnesota Tax 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 Putnam Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Minnesota Tax has no effect on the direction of Icon Financial i.e., Icon Financial and Putnam Minnesota go up and down completely randomly.
Pair Corralation between Icon Financial and Putnam Minnesota
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Putnam Minnesota. In addition to that, Icon Financial is 8.92 times more volatile than Putnam Minnesota Tax. It trades about -0.13 of its total potential returns per unit of risk. Putnam Minnesota Tax is currently generating about 0.47 per unit of volatility. If you would invest 844.00 in Putnam Minnesota Tax on September 2, 2025 and sell it today you would earn a total of 37.00 from holding Putnam Minnesota Tax or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.81% |
| Values | Daily Returns |
Icon Financial Fund vs. Putnam Minnesota Tax
Performance |
| Timeline |
| Icon Financial |
| Putnam Minnesota Tax |
Risk-Adjusted Performance
High
Weak | Strong |
Icon Financial and Putnam Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Putnam Minnesota
The main advantage of trading using opposite Icon Financial and Putnam Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Putnam Minnesota 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 Putnam Minnesota will offset losses from the drop in Putnam Minnesota'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 |
| Putnam Minnesota vs. Edward Jones Money | Putnam Minnesota vs. John Hancock Money | Putnam Minnesota vs. Putnam Money Market | Putnam Minnesota vs. Blackrock Exchange Portfolio |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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