Correlation Between IGG and I3 Interactive
Can any of the company-specific risk be diversified away by investing in both IGG and I3 Interactive 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 IGG and I3 Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGG Inc and i3 Interactive, you can compare the effects of market volatilities on IGG and I3 Interactive 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 IGG with a short position of I3 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGG and I3 Interactive.
Diversification Opportunities for IGG and I3 Interactive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGG and BLITF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IGG Inc and i3 Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Interactive and IGG 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 IGG Inc are associated (or correlated) with I3 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Interactive has no effect on the direction of IGG i.e., IGG and I3 Interactive go up and down completely randomly.
Pair Corralation between IGG and I3 Interactive
Assuming the 90 days horizon IGG is expected to generate 14.33 times less return on investment than I3 Interactive. But when comparing it to its historical volatility, IGG Inc is 9.19 times less risky than I3 Interactive. It trades about 0.06 of its potential returns per unit of risk. i3 Interactive is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.00 in i3 Interactive on August 28, 2024 and sell it today you would earn a total of 0.01 from holding i3 Interactive or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.8% |
| Values | Daily Returns |
IGG Inc vs. i3 Interactive
Performance |
| Timeline |
| IGG Inc |
| i3 Interactive |
IGG and I3 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGG and I3 Interactive
The main advantage of trading using opposite IGG and I3 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGG position performs unexpectedly, I3 Interactive 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 I3 Interactive will offset losses from the drop in I3 Interactive's long position.The idea behind IGG Inc and i3 Interactive pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| I3 Interactive vs. Sonida Senior Living | I3 Interactive vs. Cebu Air ADR | I3 Interactive vs. Teleflex Incorporated | I3 Interactive vs. Westrock Coffee |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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