Correlation Between Icon Financial and Invesco Global

Can any of the company-specific risk be diversified away by investing in both Icon Financial and Invesco Global 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 Invesco Global 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 Invesco Global Health, you can compare the effects of market volatilities on Icon Financial and Invesco Global 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 Invesco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Invesco Global.

Diversification Opportunities for Icon Financial and Invesco Global

-0.1

Correlation Coefficient

Icon Financial  Invesco Global

Good diversification

The 3 months correlation between Icon and Invesco is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Invesco Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Global Health 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 Invesco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Global Health has no effect on the direction of Icon Financial i.e., Icon Financial and Invesco Global go up and down completely randomly.

Pair Corralation between Icon Financial and Invesco Global

Assuming the 90 days horizon Icon Financial Fund is expected to generate 1.13 times more return on investment than Invesco Global. However, Icon Financial is 1.13 times more volatile than Invesco Global Health. It trades about 0.09 of its potential returns per unit of risk. Invesco Global Health is currently generating about 0.0 per unit of risk. If you would invest  900.00  in Icon Financial Fund on May 6, 2025 and sell it today you would earn a total of  46.00  from holding Icon Financial Fund or generate 5.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Icon Financial Fund  vs.  Invesco Global Health

Icon Financial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Financial Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Icon Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Invesco Global Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Invesco Global Health has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Invesco Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Icon Financial and Invesco Global

The main advantage of trading using opposite Icon Financial and Invesco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial position performs unexpectedly, Invesco Global 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 Invesco Global will offset losses from the drop in Invesco Global's long position.

The idea behind Icon Financial Fund and Invesco Global Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.