Correlation Between Icon Bond and Inflation-adjusted

Can any of the company-specific risk be diversified away by investing in both Icon Bond and Inflation-adjusted 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 Bond and Inflation-adjusted into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Icon Bond Fund and Inflation Adjusted Bond Fund, you can compare the effects of market volatilities on Icon Bond and Inflation-adjusted 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 Bond with a short position of Inflation-adjusted. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Bond and Inflation-adjusted.

Diversification Opportunities for Icon Bond and Inflation-adjusted

0.0

Correlation Coefficient

Icon Bond  Inflation-adjusted

Pay attention - limited upside

The 3 months correlation between Icon and Inflation-adjusted is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Icon Bond Fund and Inflation Adjusted Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Adjusted Bond and Icon Bond 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 Bond Fund are associated (or correlated) with Inflation-adjusted. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Adjusted Bond has no effect on the direction of Icon Bond i.e., Icon Bond and Inflation-adjusted go up and down completely randomly.

Pair Corralation between Icon Bond and Inflation-adjusted

If you would invest  1,042  in Inflation Adjusted Bond Fund on May 27, 2025 and sell it today you would earn a total of  30.00  from holding Inflation Adjusted Bond Fund or generate 2.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Icon Bond Fund  vs.  Inflation Adjusted Bond Fund

Icon Bond Fund

Risk-Adjusted Performance

Solid

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

Inflation Adjusted Bond

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inflation Adjusted Bond Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Inflation-adjusted 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 Bond and Inflation-adjusted

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

The idea behind Icon Bond Fund and Inflation Adjusted Bond Fund 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.