Correlation Between Garibaldi Resources and IGG
Can any of the company-specific risk be diversified away by investing in both Garibaldi Resources and IGG 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 Garibaldi Resources and IGG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garibaldi Resources Corp and IGG Inc, you can compare the effects of market volatilities on Garibaldi Resources and IGG 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 Garibaldi Resources with a short position of IGG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garibaldi Resources and IGG.
Diversification Opportunities for Garibaldi Resources and IGG
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Garibaldi and IGG is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Garibaldi Resources Corp and IGG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGG Inc and Garibaldi Resources 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 Garibaldi Resources Corp are associated (or correlated) with IGG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGG Inc has no effect on the direction of Garibaldi Resources i.e., Garibaldi Resources and IGG go up and down completely randomly.
Pair Corralation between Garibaldi Resources and IGG
Assuming the 90 days horizon Garibaldi Resources Corp is expected to generate 2.49 times more return on investment than IGG. However, Garibaldi Resources is 2.49 times more volatile than IGG Inc. It trades about 0.07 of its potential returns per unit of risk. IGG Inc is currently generating about 0.05 per unit of risk. If you would invest 6.00 in Garibaldi Resources Corp on September 1, 2024 and sell it today you would lose (2.00) from holding Garibaldi Resources Corp or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Garibaldi Resources Corp vs. IGG Inc
Performance |
| Timeline |
| Garibaldi Resources Corp |
| IGG Inc |
Garibaldi Resources and IGG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garibaldi Resources and IGG
The main advantage of trading using opposite Garibaldi Resources and IGG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garibaldi Resources position performs unexpectedly, IGG 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 IGG will offset losses from the drop in IGG's long position.| Garibaldi Resources vs. Prime Meridian Resources | Garibaldi Resources vs. Macmahon Holdings Limited | Garibaldi Resources vs. Hudson Resources | Garibaldi Resources vs. Rokmaster Resources Corp |
| IGG vs. CD Projekt SA | IGG vs. Sega Sammy Holdings | IGG vs. Playtika Holding Corp | IGG vs. Square Enix Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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