Correlation Between Icon Long/short and Icon Long/short

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

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

Diversification Opportunities for Icon Long/short and Icon Long/short

1.0

Correlation Coefficient

Icon Long/short  Icon Long/short

No risk reduction

The 3 months correlation between Icon and Icon is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Icon Longshort Fund and Icon Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Long/short and Icon Long/short 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 Longshort Fund are associated (or correlated) with Icon Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Long/short has no effect on the direction of Icon Long/short i.e., Icon Long/short and Icon Long/short go up and down completely randomly.

Pair Corralation between Icon Long/short and Icon Long/short

Assuming the 90 days horizon Icon Long/short is expected to generate 1.14 times less return on investment than Icon Long/short. But when comparing it to its historical volatility, Icon Longshort Fund is 1.01 times less risky than Icon Long/short. It trades about 0.15 of its potential returns per unit of risk. Icon Longshort Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,413  in Icon Longshort Fund on May 15, 2025 and sell it today you would earn a total of  276.00  from holding Icon Longshort Fund or generate 11.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Icon Longshort Fund  vs.  Icon Longshort Fund

Icon Long/short

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Longshort Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Icon Long/short may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Icon Long/short

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Longshort Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Icon Long/short may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Icon Long/short and Icon Long/short

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

The idea behind Icon Longshort Fund and Icon Longshort 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.