Correlation Between Performance Trust and Icon Financial

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

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

Diversification Opportunities for Performance Trust and Icon Financial

-0.24

Correlation Coefficient

Performance Trust  Icon Financial

Very good diversification

The 3 months correlation between Performance and Icon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Municipal and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Performance Trust 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 Performance Trust Municipal are associated (or correlated) with Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Performance Trust i.e., Performance Trust and Icon Financial go up and down completely randomly.

Pair Corralation between Performance Trust and Icon Financial

Assuming the 90 days horizon Performance Trust Municipal is expected to generate 0.21 times more return on investment than Icon Financial. However, Performance Trust Municipal is 4.8 times less risky than Icon Financial. It trades about 0.43 of its potential returns per unit of risk. Icon Financial Fund is currently generating about 0.03 per unit of risk. If you would invest  2,177  in Performance Trust Municipal on August 8, 2025 and sell it today you would earn a total of  103.00  from holding Performance Trust Municipal or generate 4.73% return on investment over 90 days.

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

Performance Trust Municipal  vs.  Icon Financial Fund

Performance Trust

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Trust Municipal are ranked lower than 34 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Performance Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Performance Trust and Icon Financial

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

The idea behind Performance Trust Municipal and Icon Financial 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.