Correlation Between IGG and Simplicity Esports

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

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

Diversification Opportunities for IGG and Simplicity Esports

0.0

Correlation Coefficient

IGG  Simplicity Esports

Pay attention - limited upside

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

Pair Corralation between IGG and Simplicity Esports

If you would invest  46.00  in IGG Inc on December 28, 2024 and sell it today you would earn a total of  13.00  from holding IGG Inc or generate 28.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IGG Inc  vs.  Simplicity Esports and

IGG Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in IGG Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, IGG reported solid returns over the last few months and may actually be approaching a breakup point.

Simplicity Esports and

Risk-Adjusted Performance

Very Weak

Over the last 90 days Simplicity Esports and has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Simplicity Esports is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with IGG and Simplicity Esports

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

The idea behind IGG Inc and Simplicity Esports and 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.