Correlation Between IGEN Networks and Salesforce

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

By analyzing existing cross correlation between IGEN Networks Corp and Salesforce, you can compare the effects of market volatilities on IGEN Networks and Salesforce 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 IGEN Networks with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGEN Networks and Salesforce.

Diversification Opportunities for IGEN Networks and Salesforce

0.0

Correlation Coefficient

IGEN Networks  Salesforce

Pay attention - limited upside

The 3 months correlation between IGEN and Salesforce is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IGEN Networks Corp and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce and IGEN Networks 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 IGEN Networks Corp are associated (or correlated) with Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce has no effect on the direction of IGEN Networks i.e., IGEN Networks and Salesforce go up and down completely randomly.

Pair Corralation between IGEN Networks and Salesforce

If you would invest  0.01  in IGEN Networks Corp on December 22, 2024 and sell it today you would earn a total of  0.00  from holding IGEN Networks Corp or generate 0.0% return on investment over 90 days.

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

IGEN Networks Corp  vs.  Salesforce

IGEN Networks Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days IGEN Networks Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, IGEN Networks is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Salesforce

Risk-Adjusted Performance

Very Weak

Over the last 90 days Salesforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with IGEN Networks and Salesforce

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

The idea behind IGEN Networks Corp and Salesforce 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.