Correlation Between Icon Financial and James Aggressive

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

Diversification Opportunities for Icon Financial and James Aggressive

0.82

Correlation Coefficient

Icon Financial  James Aggressive

Very poor diversification

The 3 months correlation between Icon and James is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and James Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Aggressive All 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 James Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Aggressive All has no effect on the direction of Icon Financial i.e., Icon Financial and James Aggressive go up and down completely randomly.

Pair Corralation between Icon Financial and James Aggressive

Assuming the 90 days horizon Icon Financial is expected to generate 4.87 times less return on investment than James Aggressive. In addition to that, Icon Financial is 1.56 times more volatile than James Aggressive Allocation. It trades about 0.03 of its total potential returns per unit of risk. James Aggressive Allocation is currently generating about 0.25 per unit of volatility. If you would invest  1,398  in James Aggressive Allocation on May 12, 2025 and sell it today you would earn a total of  128.00  from holding James Aggressive Allocation or generate 9.16% 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.  James Aggressive Allocation

Icon Financial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Financial Fund are ranked lower than 2 (%) 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.

James Aggressive All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in James Aggressive Allocation are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, James Aggressive may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Icon Financial and James Aggressive

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

The idea behind Icon Financial Fund and James Aggressive Allocation 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..