Correlation Between Ambrus Core and Icon Equity
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Icon Equity 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 Ambrus Core and Icon Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Icon Equity Income, you can compare the effects of market volatilities on Ambrus Core and Icon Equity 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 Ambrus Core with a short position of Icon Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Icon Equity.
Diversification Opportunities for Ambrus Core and Icon Equity
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ambrus and Icon is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Icon Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Equity Income and Ambrus Core 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 Ambrus Core Bond are associated (or correlated) with Icon Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Equity Income has no effect on the direction of Ambrus Core i.e., Ambrus Core and Icon Equity go up and down completely randomly.
Pair Corralation between Ambrus Core and Icon Equity
Assuming the 90 days horizon Ambrus Core is expected to generate 3.04 times less return on investment than Icon Equity. But when comparing it to its historical volatility, Ambrus Core Bond is 4.46 times less risky than Icon Equity. It trades about 0.25 of its potential returns per unit of risk. Icon Equity Income is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,605 in Icon Equity Income on May 31, 2025 and sell it today you would earn a total of 132.00 from holding Icon Equity Income or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Ambrus Core Bond vs. Icon Equity Income
Performance |
| Timeline |
| Ambrus Core Bond |
| Icon Equity Income |
Ambrus Core and Icon Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Icon Equity
The main advantage of trading using opposite Ambrus Core and Icon Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Icon Equity 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 Equity will offset losses from the drop in Icon Equity's long position.| Ambrus Core vs. Leuthold Global Fund | Ambrus Core vs. Legg Mason Global | Ambrus Core vs. The Hartford Global | Ambrus Core vs. Morningstar Global Income |
| Icon Equity vs. Ab Tax Managed Wealth | Icon Equity vs. Rbc Bluebay Emerging | Icon Equity vs. Ep Emerging Markets | Icon Equity vs. Investec Emerging Markets |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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