Correlation Between IGO and Progressive Planet

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

By analyzing existing cross correlation between IGO Limited and Progressive Planet Solutions, you can compare the effects of market volatilities on IGO and Progressive Planet 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 IGO with a short position of Progressive Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Progressive Planet.

Diversification Opportunities for IGO and Progressive Planet

0.0

Correlation Coefficient

IGO  Progressive Planet

Pay attention - limited upside

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

Pair Corralation between IGO and Progressive Planet

Assuming the 90 days horizon IGO Limited is expected to under-perform the Progressive Planet. But the pink sheet apears to be less risky and, when comparing its historical volatility, IGO Limited is 1.36 times less risky than Progressive Planet. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Progressive Planet Solutions is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  13.00  in Progressive Planet Solutions on December 30, 2024 and sell it today you would lose (2.00) from holding Progressive Planet Solutions or give up 15.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

IGO Limited  vs.  Progressive Planet Solutions

IGO Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days IGO Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Progressive Planet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Progressive Planet Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with IGO and Progressive Planet

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

The idea behind IGO Limited and Progressive Planet Solutions 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.