Correlation Between IGG and Gaming Technologies
Can any of the company-specific risk be diversified away by investing in both IGG and Gaming Technologies 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 Gaming Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGG Inc and Gaming Technologies Common, you can compare the effects of market volatilities on IGG and Gaming Technologies 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 Gaming Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGG and Gaming Technologies.
Diversification Opportunities for IGG and Gaming Technologies
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IGG and Gaming is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding IGG Inc and Gaming Technologies Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Technologies 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 Gaming Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Technologies has no effect on the direction of IGG i.e., IGG and Gaming Technologies go up and down completely randomly.
Pair Corralation between IGG and Gaming Technologies
If you would invest 44.00 in IGG Inc on November 28, 2024 and sell it today you would earn a total of 12.00 from holding IGG Inc or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGG Inc vs. Gaming Technologies Common
Performance |
| Timeline |
| IGG Inc |
| Gaming Technologies |
IGG and Gaming Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGG and Gaming Technologies
The main advantage of trading using opposite IGG and Gaming Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGG position performs unexpectedly, Gaming Technologies 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 Gaming Technologies will offset losses from the drop in Gaming Technologies' long position.The idea behind IGG Inc and Gaming Technologies Common 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.| Gaming Technologies vs. i3 Interactive | Gaming Technologies vs. IGG Inc | Gaming Technologies vs. Nintendo Co | Gaming Technologies vs. Take Two Interactive Software |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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