Correlation Between IGEN Networks and PDF Solutions
Can any of the company-specific risk be diversified away by investing in both IGEN Networks and PDF Solutions 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 PDF Solutions 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 PDF Solutions, you can compare the effects of market volatilities on IGEN Networks and PDF Solutions 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 PDF Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGEN Networks and PDF Solutions.
Diversification Opportunities for IGEN Networks and PDF Solutions
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IGEN and PDF is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding IGEN Networks Corp and PDF Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDF Solutions 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 PDF Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDF Solutions has no effect on the direction of IGEN Networks i.e., IGEN Networks and PDF Solutions go up and down completely randomly.
Pair Corralation between IGEN Networks and PDF Solutions
If you would invest 2,945 in PDF Solutions on August 28, 2024 and sell it today you would earn a total of 185.00 from holding PDF Solutions or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IGEN Networks Corp vs. PDF Solutions
Performance |
| Timeline |
| IGEN Networks Corp |
| PDF Solutions |
IGEN Networks and PDF Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGEN Networks and PDF Solutions
The main advantage of trading using opposite IGEN Networks and PDF Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGEN Networks position performs unexpectedly, PDF Solutions 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 PDF Solutions will offset losses from the drop in PDF Solutions' long position.| IGEN Networks vs. Astra Veda | IGEN Networks vs. On4 Communications | IGEN Networks vs. AB International Group | IGEN Networks vs. Peer To Peer |
| PDF Solutions vs. Progress Software | PDF Solutions vs. PROS Holdings | PDF Solutions vs. Sapiens International | PDF Solutions vs. Meridianlink |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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