Correlation Between Ikigai Ventures and GlobalData PLC

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

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

Diversification Opportunities for Ikigai Ventures and GlobalData PLC

0.74

Correlation Coefficient

Ikigai Ventures  GlobalData PLC

Poor diversification

The 3 months correlation between Ikigai and GlobalData is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ikigai Ventures and GlobalData PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlobalData PLC and Ikigai Ventures 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 Ikigai Ventures are associated (or correlated) with GlobalData PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlobalData PLC has no effect on the direction of Ikigai Ventures i.e., Ikigai Ventures and GlobalData PLC go up and down completely randomly.

Pair Corralation between Ikigai Ventures and GlobalData PLC

Assuming the 90 days trading horizon Ikigai Ventures is expected to generate 0.51 times more return on investment than GlobalData PLC. However, Ikigai Ventures is 1.97 times less risky than GlobalData PLC. It trades about -0.13 of its potential returns per unit of risk. GlobalData PLC is currently generating about -0.12 per unit of risk. If you would invest  4,650  in Ikigai Ventures on December 25, 2024 and sell it today you would lose (450.00) from holding Ikigai Ventures or give up 9.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ikigai Ventures  vs.  GlobalData PLC

Ikigai Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ikigai Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

GlobalData PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days GlobalData PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Ikigai Ventures and GlobalData PLC

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

The idea behind Ikigai Ventures and GlobalData PLC 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.