Correlation Between IMC SA and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both IMC SA and Igoria Trade 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 IMC SA and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMC SA and Igoria Trade SA, you can compare the effects of market volatilities on IMC SA and Igoria Trade 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 IMC SA with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMC SA and Igoria Trade.
Diversification Opportunities for IMC SA and Igoria Trade
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IMC and Igoria is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding IMC SA and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade SA and IMC SA 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 IMC SA are associated (or correlated) with Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of IMC SA i.e., IMC SA and Igoria Trade go up and down completely randomly.
Pair Corralation between IMC SA and Igoria Trade
Assuming the 90 days trading horizon IMC SA is expected to generate 2.31 times more return on investment than Igoria Trade. However, IMC SA is 2.31 times more volatile than Igoria Trade SA. It trades about 0.27 of its potential returns per unit of risk. Igoria Trade SA is currently generating about -0.04 per unit of risk. If you would invest 1,325 in IMC SA on December 1, 2024 and sell it today you would earn a total of 1,645 from holding IMC SA or generate 124.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
IMC SA vs. Igoria Trade SA
Performance |
Timeline |
IMC SA |
Igoria Trade SA |
IMC SA and Igoria Trade Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IMC SA and Igoria Trade
The main advantage of trading using opposite IMC SA and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMC SA position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade's long position.IMC SA vs. Gaming Factory SA | IMC SA vs. Creativeforge Games SA | IMC SA vs. LSI Software SA | IMC SA vs. TEN SQUARE GAMES |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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