Correlation Between MCI Management and Igoria Trade

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Can any of the company-specific risk be diversified away by investing in both MCI Management 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 MCI Management and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCI Management SA and Igoria Trade SA, you can compare the effects of market volatilities on MCI Management 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 MCI Management with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCI Management and Igoria Trade.

Diversification Opportunities for MCI Management and Igoria Trade

MCIIgoriaDiversified AwayMCIIgoriaDiversified Away100%
0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between MCI and Igoria is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MCI Management 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 MCI Management 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 MCI Management 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 MCI Management i.e., MCI Management and Igoria Trade go up and down completely randomly.

Pair Corralation between MCI Management and Igoria Trade

Assuming the 90 days trading horizon MCI Management SA is expected to generate 0.77 times more return on investment than Igoria Trade. However, MCI Management SA is 1.31 times less risky than Igoria Trade. It trades about 0.09 of its potential returns per unit of risk. Igoria Trade SA is currently generating about 0.01 per unit of risk. If you would invest  2,460  in MCI Management SA on November 26, 2024 and sell it today you would earn a total of  140.00  from holding MCI Management SA or generate 5.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy97.44%
ValuesDaily Returns

MCI Management SA  vs.  Igoria Trade SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -505
JavaScript chart by amCharts 3.21.15MCI IGT
       Timeline  
MCI Management SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MCI Management SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, MCI Management is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2424.52525.52626.52727.528
Igoria Trade SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Igoria Trade SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.230.2350.240.2450.250.2550.260.2650.27

MCI Management and Igoria Trade Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.46-1.84-1.22-0.61-0.01020.581.191.812.423.03 0.040.060.080.100.120.140.16
JavaScript chart by amCharts 3.21.15MCI IGT
       Returns  

Pair Trading with MCI Management and Igoria Trade

The main advantage of trading using opposite MCI Management and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCI Management 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.
The idea behind MCI Management SA and Igoria Trade SA 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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