Correlation Between Igoria Trade and SOFTWARE MANSION
Can any of the company-specific risk be diversified away by investing in both Igoria Trade and SOFTWARE MANSION 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 Igoria Trade and SOFTWARE MANSION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Igoria Trade SA and SOFTWARE MANSION SPOLKA, you can compare the effects of market volatilities on Igoria Trade and SOFTWARE MANSION 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 Igoria Trade with a short position of SOFTWARE MANSION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and SOFTWARE MANSION.
Diversification Opportunities for Igoria Trade and SOFTWARE MANSION
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Igoria and SOFTWARE is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and SOFTWARE MANSION SPOLKA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFTWARE MANSION SPOLKA and Igoria Trade 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 Igoria Trade SA are associated (or correlated) with SOFTWARE MANSION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFTWARE MANSION SPOLKA has no effect on the direction of Igoria Trade i.e., Igoria Trade and SOFTWARE MANSION go up and down completely randomly.
Pair Corralation between Igoria Trade and SOFTWARE MANSION
Assuming the 90 days trading horizon Igoria Trade SA is expected to generate 1.55 times more return on investment than SOFTWARE MANSION. However, Igoria Trade is 1.55 times more volatile than SOFTWARE MANSION SPOLKA. It trades about -0.02 of its potential returns per unit of risk. SOFTWARE MANSION SPOLKA is currently generating about -0.08 per unit of risk. If you would invest 27.00 in Igoria Trade SA on September 6, 2024 and sell it today you would lose (2.00) from holding Igoria Trade SA or give up 7.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.16% |
Values | Daily Returns |
Igoria Trade SA vs. SOFTWARE MANSION SPOLKA
Performance |
Timeline |
Igoria Trade SA |
SOFTWARE MANSION SPOLKA |
Igoria Trade and SOFTWARE MANSION Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Igoria Trade and SOFTWARE MANSION
The main advantage of trading using opposite Igoria Trade and SOFTWARE MANSION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade position performs unexpectedly, SOFTWARE MANSION 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 SOFTWARE MANSION will offset losses from the drop in SOFTWARE MANSION's long position.Igoria Trade vs. Gamedust SA | Igoria Trade vs. PLAYWAY SA | Igoria Trade vs. Bank Millennium SA | Igoria Trade vs. Movie Games SA |
SOFTWARE MANSION vs. MW Trade SA | SOFTWARE MANSION vs. LSI Software SA | SOFTWARE MANSION vs. Logintrade SA | SOFTWARE MANSION vs. Bank Millennium SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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