Correlation Between Saat Aggressive and Icon Natural
Can any of the company-specific risk be diversified away by investing in both Saat Aggressive and Icon Natural 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 Saat Aggressive and Icon Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Aggressive Strategy and Icon Natural Resources, you can compare the effects of market volatilities on Saat Aggressive and Icon Natural 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 Saat Aggressive with a short position of Icon Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Aggressive and Icon Natural.
Diversification Opportunities for Saat Aggressive and Icon Natural
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Icon is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Saat Aggressive Strategy and Icon Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Natural Resources and Saat Aggressive 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 Saat Aggressive Strategy are associated (or correlated) with Icon Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Natural Resources has no effect on the direction of Saat Aggressive i.e., Saat Aggressive and Icon Natural go up and down completely randomly.
Pair Corralation between Saat Aggressive and Icon Natural
Assuming the 90 days horizon Saat Aggressive is expected to generate 2.14 times less return on investment than Icon Natural. But when comparing it to its historical volatility, Saat Aggressive Strategy is 2.49 times less risky than Icon Natural. It trades about 0.12 of its potential returns per unit of risk. Icon Natural Resources is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,765 in Icon Natural Resources on August 16, 2025 and sell it today you would earn a total of 157.00 from holding Icon Natural Resources or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Aggressive Strategy vs. Icon Natural Resources
Performance |
| Timeline |
| Saat Aggressive Strategy |
| Icon Natural Resources |
Saat Aggressive and Icon Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Aggressive and Icon Natural
The main advantage of trading using opposite Saat Aggressive and Icon Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Aggressive position performs unexpectedly, Icon Natural 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 Icon Natural will offset losses from the drop in Icon Natural's long position.| Saat Aggressive vs. Saat Aggressive Strategy | Saat Aggressive vs. Saat Tax Managed Aggressive | Saat Aggressive vs. Saat Market Growth | Saat Aggressive vs. American Beacon Balanced |
| Icon Natural vs. Biotechnology Ultrasector Profund | Icon Natural vs. Jackson Square Smid Cap | Icon Natural vs. Government Street Equity | Icon Natural vs. Thrivent High Yield |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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