Correlation Between Intrusion and IAMGold

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

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

Diversification Opportunities for Intrusion and IAMGold

-0.03

Correlation Coefficient

Intrusion  IAMGold

Good diversification

The 3 months correlation between Intrusion and IAMGold is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Intrusion and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold and Intrusion 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 Intrusion are associated (or correlated) with IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Intrusion i.e., Intrusion and IAMGold go up and down completely randomly.

Pair Corralation between Intrusion and IAMGold

Given the investment horizon of 90 days Intrusion is expected to generate 35.28 times more return on investment than IAMGold. However, Intrusion is 35.28 times more volatile than IAMGold. It trades about 0.29 of its potential returns per unit of risk. IAMGold is currently generating about 0.16 per unit of risk. If you would invest  36.00  in Intrusion on October 24, 2024 and sell it today you would earn a total of  195.00  from holding Intrusion or generate 541.67% return on investment over 90 days.

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

Intrusion  vs.  IAMGold

Intrusion

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intrusion showed solid returns over the last few months and may actually be approaching a breakup point.

IAMGold

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Intrusion and IAMGold

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

The idea behind Intrusion and IAMGold 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.