Correlation Between Gremi Media and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both Gremi Media 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 Gremi Media and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gremi Media SA and Igoria Trade SA, you can compare the effects of market volatilities on Gremi Media 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 Gremi Media with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gremi Media and Igoria Trade.
Diversification Opportunities for Gremi Media and Igoria Trade
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gremi and Igoria is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Gremi Media 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 Gremi Media 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 Gremi Media 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 Gremi Media i.e., Gremi Media and Igoria Trade go up and down completely randomly.
Pair Corralation between Gremi Media and Igoria Trade
Assuming the 90 days trading horizon Gremi Media SA is expected to under-perform the Igoria Trade. But the stock apears to be less risky and, when comparing its historical volatility, Gremi Media SA is 1.06 times less risky than Igoria Trade. The stock trades about -0.09 of its potential returns per unit of risk. The Igoria Trade SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Igoria Trade SA on August 30, 2024 and sell it today you would lose (1.00) from holding Igoria Trade SA or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.66% |
| Values | Daily Returns |
Gremi Media SA vs. Igoria Trade SA
Performance |
| Timeline |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Igoria Trade SA |
Gremi Media and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gremi Media and Igoria Trade
The main advantage of trading using opposite Gremi Media and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gremi Media 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.| Gremi Media vs. BNP Paribas Bank | Gremi Media vs. Road Studio SA | Gremi Media vs. mBank SA | Gremi Media vs. SOFTWARE MANSION SPOLKA |
| Igoria Trade vs. NGG | Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade vs. CFI Holding 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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