Correlation Between Icon Financial and Cref Money
Can any of the company-specific risk be diversified away by investing in both Icon Financial and Cref Money 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 Cref Money 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 Cref Money Market, you can compare the effects of market volatilities on Icon Financial and Cref Money 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 Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Cref Money.
Diversification Opportunities for Icon Financial and Cref Money
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Icon and Cref is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market 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 Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Icon Financial i.e., Icon Financial and Cref Money go up and down completely randomly.
Pair Corralation between Icon Financial and Cref Money
Assuming the 90 days horizon Icon Financial Fund is expected to generate 48.94 times more return on investment than Cref Money. However, Icon Financial is 48.94 times more volatile than Cref Money Market. It trades about 0.11 of its potential returns per unit of risk. Cref Money Market is currently generating about 0.98 per unit of risk. If you would invest 952.00 in Icon Financial Fund on June 6, 2025 and sell it today you would earn a total of 52.00 from holding Icon Financial Fund or generate 5.46% 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. Cref Money Market
Performance |
| Timeline |
| Icon Financial |
| Cref Money Market |
Icon Financial and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Cref Money
The main advantage of trading using opposite Icon Financial and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Cref Money 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 Cref Money will offset losses from the drop in Cref Money's long position.| Icon Financial vs. Icon Bond Fund | Icon Financial vs. Icon Longshort Fund | Icon Financial vs. Icon Longshort Fund | Icon Financial vs. Icon Natural Resources |
| Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard 500 Index | Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard Total Stock |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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