Correlation Between Stet Pennsylvania and Icon Information

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

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

Diversification Opportunities for Stet Pennsylvania and Icon Information

0.14

Correlation Coefficient

Stet Pennsylvania  Icon Information

Average diversification

The 3 months correlation between Stet and Icon is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Stet Pennsylvania Municipal and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec and Stet Pennsylvania 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 Stet Pennsylvania Municipal are associated (or correlated) with Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of Stet Pennsylvania i.e., Stet Pennsylvania and Icon Information go up and down completely randomly.

Pair Corralation between Stet Pennsylvania and Icon Information

Assuming the 90 days horizon Stet Pennsylvania Municipal is not expected to generate positive returns. However, Stet Pennsylvania Municipal is 71.93 times less risky than Icon Information. It waists most of its returns potential to compensate for thr risk taken. Icon Information is generating about -0.21 per unit of risk. If you would invest  1,052  in Stet Pennsylvania Municipal on September 6, 2025 and sell it today you would earn a total of  0.00  from holding Stet Pennsylvania Municipal or generate 0.0% return on investment over 90 days.

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

Stet Pennsylvania Municipal  vs.  Icon Information Technology

Stet Pennsylvania

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stet Pennsylvania Municipal are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Stet Pennsylvania is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Icon Information Tec

Risk-Adjusted Performance

Weakest

Over the last 90 days Icon Information Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Stet Pennsylvania and Icon Information

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

The idea behind Stet Pennsylvania Municipal and Icon Information Technology 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.