Correlation Between IGEN Networks and BASE
Can any of the company-specific risk be diversified away by investing in both IGEN Networks and BASE 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 IGEN Networks and BASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGEN Networks Corp and BASE Inc, you can compare the effects of market volatilities on IGEN Networks and BASE 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 IGEN Networks with a short position of BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGEN Networks and BASE.
Diversification Opportunities for IGEN Networks and BASE
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between IGEN and BASE is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding IGEN Networks Corp and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and IGEN Networks 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 IGEN Networks Corp are associated (or correlated) with BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of IGEN Networks i.e., IGEN Networks and BASE go up and down completely randomly.
Pair Corralation between IGEN Networks and BASE
If you would invest 0.01 in IGEN Networks Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding IGEN Networks Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGEN Networks Corp vs. BASE Inc
Performance |
| Timeline |
| IGEN Networks Corp |
| BASE Inc |
IGEN Networks and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGEN Networks and BASE
The main advantage of trading using opposite IGEN Networks and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGEN Networks position performs unexpectedly, BASE 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 BASE will offset losses from the drop in BASE's long position.| IGEN Networks vs. Astra Veda | IGEN Networks vs. On4 Communications | IGEN Networks vs. AB International Group | IGEN Networks vs. Peer To Peer |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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