Correlation Between Igoria Trade and Detalion Games

Can any of the company-specific risk be diversified away by investing in both Igoria Trade and Detalion Games 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 Detalion Games 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 Detalion Games SA, you can compare the effects of market volatilities on Igoria Trade and Detalion Games 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 Detalion Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and Detalion Games.

Diversification Opportunities for Igoria Trade and Detalion Games

0.15

Correlation Coefficient

Igoria Trade  Detalion Games

Average diversification

The 3 months correlation between Igoria and Detalion is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and Detalion Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detalion Games SA 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 Detalion Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detalion Games SA has no effect on the direction of Igoria Trade i.e., Igoria Trade and Detalion Games go up and down completely randomly.

Pair Corralation between Igoria Trade and Detalion Games

Assuming the 90 days trading horizon Igoria Trade SA is expected to under-perform the Detalion Games. But the stock apears to be less risky and, when comparing its historical volatility, Igoria Trade SA is 2.06 times less risky than Detalion Games. The stock trades about -0.07 of its potential returns per unit of risk. The Detalion Games SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Detalion Games SA on November 28, 2024 and sell it today you would earn a total of  28.00  from holding Detalion Games SA or generate 29.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	44.83%
Values	Daily Returns

Igoria Trade SA  vs.  Detalion Games SA

Igoria Trade SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Igoria Trade SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Detalion Games SA

Risk-Adjusted Performance

Solid

Over the last 90 days Detalion Games SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Detalion Games reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Igoria Trade and Detalion Games

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

The idea behind Igoria Trade SA and Detalion Games SA 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.