Correlation Between IMGP DBi and Siren DIVCON

Can any of the company-specific risk be diversified away by investing in both IMGP DBi and Siren DIVCON 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 IMGP DBi and Siren DIVCON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iMGP DBi Managed and Siren DIVCON Dividend, you can compare the effects of market volatilities on IMGP DBi and Siren DIVCON 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 IMGP DBi with a short position of Siren DIVCON. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMGP DBi and Siren DIVCON.

Diversification Opportunities for IMGP DBi and Siren DIVCON

0.12

Correlation Coefficient

IMGP DBi  Siren DIVCON

Average diversification

The 3 months correlation between IMGP and Siren is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding iMGP DBi Managed and Siren DIVCON Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siren DIVCON Dividend and IMGP DBi 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 iMGP DBi Managed are associated (or correlated) with Siren DIVCON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siren DIVCON Dividend has no effect on the direction of IMGP DBi i.e., IMGP DBi and Siren DIVCON go up and down completely randomly.

Pair Corralation between IMGP DBi and Siren DIVCON

Given the investment horizon of 90 days iMGP DBi Managed is expected to under-perform the Siren DIVCON. But the etf apears to be less risky and, when comparing its historical volatility, iMGP DBi Managed is 2.13 times less risky than Siren DIVCON. The etf trades about 0.0 of its potential returns per unit of risk. The Siren DIVCON Dividend is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,292  in Siren DIVCON Dividend on October 5, 2024 and sell it today you would earn a total of  748.00  from holding Siren DIVCON Dividend or generate 22.72% return on investment over 90 days.

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

iMGP DBi Managed  vs.  Siren DIVCON Dividend

iMGP DBi Managed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iMGP DBi Managed has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, IMGP DBi is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Siren DIVCON Dividend

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siren DIVCON Dividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Siren DIVCON is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with IMGP DBi and Siren DIVCON

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

The idea behind iMGP DBi Managed and Siren DIVCON Dividend 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.