Correlation Between IGO and Regent Ventures

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

By analyzing existing cross correlation between IGO Limited and Regent Ventures, you can compare the effects of market volatilities on IGO and Regent Ventures 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 Regent Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Regent Ventures.

Diversification Opportunities for IGO and Regent Ventures

0.0

Correlation Coefficient

IGO  Regent Ventures

Pay attention - limited upside

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

Pair Corralation between IGO and Regent Ventures

If you would invest  609.00  in IGO Limited on September 16, 2024 and sell it today you would earn a total of  71.00  from holding IGO Limited or generate 11.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

IGO Limited  vs.  Regent Ventures

IGO Limited

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in IGO Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, IGO may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Regent Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with IGO and Regent Ventures

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

The idea behind IGO Limited and Regent Ventures 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.