Correlation Between Informatica and Mogo

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

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

Diversification Opportunities for Informatica and Mogo

0.72

Correlation Coefficient

Informatica  Mogo

Poor diversification

The 3 months correlation between Informatica and Mogo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Informatica and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc and Informatica 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 Informatica are associated (or correlated) with Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Informatica i.e., Informatica and Mogo go up and down completely randomly.

Pair Corralation between Informatica and Mogo

Given the investment horizon of 90 days Informatica is expected to under-perform the Mogo. But the stock apears to be less risky and, when comparing its historical volatility, Informatica is 1.21 times less risky than Mogo. The stock trades about -0.16 of its potential returns per unit of risk. The Mogo Inc is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  130.00  in Mogo Inc on December 30, 2024 and sell it today you would lose (40.00) from holding Mogo Inc or give up 30.77% of portfolio value over 90 days.

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

Informatica  vs.  Mogo Inc

Informatica

Risk-Adjusted Performance

Very Weak

Over the last 90 days Informatica has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat 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.

Mogo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mogo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Informatica and Mogo

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

The idea behind Informatica and Mogo Inc 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.