Correlation Between HM Inwest and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both HM Inwest 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 HM Inwest and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM Inwest SA and Igoria Trade SA, you can compare the effects of market volatilities on HM Inwest 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 HM Inwest with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Igoria Trade.
Diversification Opportunities for HM Inwest and Igoria Trade
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HMI and Igoria is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest 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 HM Inwest 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 HM Inwest 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 HM Inwest i.e., HM Inwest and Igoria Trade go up and down completely randomly.
Pair Corralation between HM Inwest and Igoria Trade
Assuming the 90 days trading horizon HM Inwest is expected to generate 24.08 times less return on investment than Igoria Trade. But when comparing it to its historical volatility, HM Inwest SA is 12.09 times less risky than Igoria Trade. It trades about 0.04 of its potential returns per unit of risk. Igoria Trade SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Igoria Trade SA on September 2, 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 Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
HM Inwest SA vs. Igoria Trade SA
Performance |
| Timeline |
| HM Inwest SA |
| Igoria Trade SA |
HM Inwest and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Igoria Trade
The main advantage of trading using opposite HM Inwest and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest 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.| HM Inwest vs. Carlson Investments SA | HM Inwest vs. Gaming Factory SA | HM Inwest vs. Enter Air SA | HM Inwest vs. PZ Cormay SA |
| Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade vs. Asseco South Eastern | 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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