Correlation Between True Games and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both True Games and Igoria Trade 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 True Games and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between True Games Syndicate and Igoria Trade SA, you can compare the effects of market volatilities on True Games and Igoria Trade 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 True Games with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Games and Igoria Trade.
Diversification Opportunities for True Games and Igoria Trade
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between True and Igoria is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding True Games Syndicate and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade SA and True Games 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 True Games Syndicate are associated (or correlated) with Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of True Games i.e., True Games and Igoria Trade go up and down completely randomly.
Pair Corralation between True Games and Igoria Trade
Assuming the 90 days trading horizon True Games Syndicate is expected to under-perform the Igoria Trade. But the stock apears to be less risky and, when comparing its historical volatility, True Games Syndicate is 1.12 times less risky than Igoria Trade. The stock trades about -0.13 of its potential returns per unit of risk. The Igoria Trade SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Igoria Trade SA on September 10, 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 | Weak |
Accuracy | 90.32% |
Values | Daily Returns |
True Games Syndicate vs. Igoria Trade SA
Performance |
Timeline |
True Games Syndicate |
Igoria Trade SA |
True Games and Igoria Trade Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with True Games and Igoria Trade
The main advantage of trading using opposite True Games and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if True Games position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade's long position.True Games vs. Clean Carbon Energy | True Games vs. ADX | True Games vs. Agroliga Group PLC | True Games vs. Vee SA |
Igoria Trade vs. TEN SQUARE GAMES | Igoria Trade vs. UniCredit SpA | Igoria Trade vs. Alior Bank SA | Igoria Trade vs. Immobile |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Fundamental Analysis View fundamental data based on most recent published financial statements |