Correlation Between Auddia and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both Auddia and IGEN Networks 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 Auddia and IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auddia Inc and IGEN Networks Corp, you can compare the effects of market volatilities on Auddia and IGEN Networks 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 Auddia with a short position of IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auddia and IGEN Networks.
Diversification Opportunities for Auddia and IGEN Networks
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auddia and IGEN is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Auddia Inc and IGEN Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGEN Networks Corp and Auddia 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 Auddia Inc are associated (or correlated) with IGEN Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGEN Networks Corp has no effect on the direction of Auddia i.e., Auddia and IGEN Networks go up and down completely randomly.
Pair Corralation between Auddia and IGEN Networks
If you would invest 0.01 in IGEN Networks Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding IGEN Networks Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Auddia Inc vs. IGEN Networks Corp
Performance |
| Timeline |
| Auddia Inc |
| IGEN Networks Corp |
Auddia and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auddia and IGEN Networks
The main advantage of trading using opposite Auddia and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auddia position performs unexpectedly, IGEN Networks 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 IGEN Networks will offset losses from the drop in IGEN Networks' long position.| Auddia vs. Braskem SA Class | Auddia vs. Axalta Coating Systems | Auddia vs. Supercom | Auddia vs. Stepan Company |
| IGEN Networks vs. Astra Veda | IGEN Networks vs. On4 Communications | IGEN Networks vs. AB International Group | IGEN Networks vs. Peer To Peer |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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