Correlation Between Tigo Energy and CIMG

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

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

Diversification Opportunities for Tigo Energy and CIMG

0.14

Correlation Coefficient

Tigo Energy  CIMG

Average diversification

The 3 months correlation between Tigo and CIMG is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tigo Energy and CIMG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMG Inc and Tigo Energy 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 Tigo Energy are associated (or correlated) with CIMG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMG Inc has no effect on the direction of Tigo Energy i.e., Tigo Energy and CIMG go up and down completely randomly.

Pair Corralation between Tigo Energy and CIMG

Given the investment horizon of 90 days Tigo Energy is expected to under-perform the CIMG. But the stock apears to be less risky and, when comparing its historical volatility, Tigo Energy is 4.33 times less risky than CIMG. The stock trades about -0.05 of its potential returns per unit of risk. The CIMG Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  55.00  in CIMG Inc on October 17, 2024 and sell it today you would earn a total of  18.00  from holding CIMG Inc or generate 32.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.44%
Values	Daily Returns

Tigo Energy  vs.  CIMG Inc

Tigo Energy

Risk-Adjusted Performance

0 of 100

Very Weak

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

CIMG Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CIMG Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Tigo Energy and CIMG

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

The idea behind Tigo Energy and CIMG 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.