Correlation Between Datable Technology and IGM Financial
Can any of the company-specific risk be diversified away by investing in both Datable Technology and IGM Financial 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 Datable Technology and IGM Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datable Technology Corp and IGM Financial, you can compare the effects of market volatilities on Datable Technology and IGM Financial 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 Datable Technology with a short position of IGM Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datable Technology and IGM Financial.
Diversification Opportunities for Datable Technology and IGM Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Datable and IGM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Datable Technology Corp and IGM Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGM Financial and Datable Technology 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 Datable Technology Corp are associated (or correlated) with IGM Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGM Financial has no effect on the direction of Datable Technology i.e., Datable Technology and IGM Financial go up and down completely randomly.
Pair Corralation between Datable Technology and IGM Financial
Assuming the 90 days horizon Datable Technology Corp is expected to under-perform the IGM Financial. In addition to that, Datable Technology is 1.64 times more volatile than IGM Financial. It trades about -0.06 of its total potential returns per unit of risk. IGM Financial is currently generating about 0.14 per unit of volatility. If you would invest 3,078 in IGM Financial on October 1, 2024 and sell it today you would earn a total of 1,598 from holding IGM Financial or generate 51.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datable Technology Corp vs. IGM Financial
Performance |
| Timeline |
| Datable Technology Corp |
| IGM Financial |
Datable Technology and IGM Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datable Technology and IGM Financial
The main advantage of trading using opposite Datable Technology and IGM Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datable Technology position performs unexpectedly, IGM Financial 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 IGM Financial will offset losses from the drop in IGM Financial's long position.| Datable Technology vs. Questor Technology | Datable Technology vs. Calian Technologies | Datable Technology vs. Quorum Information Technologies | Datable Technology vs. Northstar Clean Technologies |
| IGM Financial vs. Berkshire Hathaway CDR | IGM Financial vs. JPMorgan Chase Co | IGM Financial vs. Bank of America | IGM Financial vs. Alphabet Inc CDR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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