Correlation Between Gamedust and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both Gamedust 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 Gamedust and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamedust SA and Igoria Trade SA, you can compare the effects of market volatilities on Gamedust 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 Gamedust with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamedust and Igoria Trade.
Diversification Opportunities for Gamedust and Igoria Trade
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gamedust and Igoria is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gamedust 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 Gamedust 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 Gamedust 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 Gamedust i.e., Gamedust and Igoria Trade go up and down completely randomly.
Pair Corralation between Gamedust and Igoria Trade
Assuming the 90 days trading horizon Gamedust SA is expected to under-perform the Igoria Trade. In addition to that, Gamedust is 1.12 times more volatile than Igoria Trade SA. It trades about -0.24 of its total potential returns per unit of risk. Igoria Trade SA is currently generating about 0.07 per unit of volatility. If you would invest 26.00 in Igoria Trade SA on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Igoria Trade SA or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamedust SA vs. Igoria Trade SA
Performance |
| Timeline |
| Gamedust SA |
| Igoria Trade SA |
Gamedust and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamedust and Igoria Trade
The main advantage of trading using opposite Gamedust and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamedust 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.| Gamedust vs. SOFTWARE MANSION SPOLKA | Gamedust vs. Globe Trade Centre | Gamedust vs. Mercator Medical SA | Gamedust vs. Bank Millennium SA |
| Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Kogeneracja SA | Igoria Trade vs. Asseco South Eastern | Igoria Trade vs. Movie Games SA |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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