Correlation Between IGEN Networks and Maxwell Resource
Can any of the company-specific risk be diversified away by investing in both IGEN Networks and Maxwell Resource 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 Maxwell Resource 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 Maxwell Resource, you can compare the effects of market volatilities on IGEN Networks and Maxwell Resource 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 Maxwell Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGEN Networks and Maxwell Resource.
Diversification Opportunities for IGEN Networks and Maxwell Resource
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGEN and Maxwell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IGEN Networks Corp and Maxwell Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxwell Resource 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 Maxwell Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxwell Resource has no effect on the direction of IGEN Networks i.e., IGEN Networks and Maxwell Resource go up and down completely randomly.
Pair Corralation between IGEN Networks and Maxwell Resource
Given the investment horizon of 90 days IGEN Networks Corp is expected to generate 1.91 times more return on investment than Maxwell Resource. However, IGEN Networks is 1.91 times more volatile than Maxwell Resource. It trades about 0.08 of its potential returns per unit of risk. Maxwell Resource is currently generating about 0.11 per unit of risk. If you would invest 0.03 in IGEN Networks Corp on December 4, 2024 and sell it today you would lose (0.02) from holding IGEN Networks Corp or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGEN Networks Corp vs. Maxwell Resource
Performance |
| Timeline |
| IGEN Networks Corp |
| Maxwell Resource |
IGEN Networks and Maxwell Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGEN Networks and Maxwell Resource
The main advantage of trading using opposite IGEN Networks and Maxwell Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGEN Networks position performs unexpectedly, Maxwell Resource 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 Maxwell Resource will offset losses from the drop in Maxwell Resource'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 |
| Maxwell Resource vs. CurrentC Power | Maxwell Resource vs. Agent Information Software | Maxwell Resource vs. Auddia Inc | Maxwell Resource vs. BASE Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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