Correlation Between IGM Financial and Advent Wireless
Can any of the company-specific risk be diversified away by investing in both IGM Financial and Advent Wireless 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 IGM Financial and Advent Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGM Financial and Advent Wireless, you can compare the effects of market volatilities on IGM Financial and Advent Wireless 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 IGM Financial with a short position of Advent Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGM Financial and Advent Wireless.
Diversification Opportunities for IGM Financial and Advent Wireless
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IGM and Advent is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding IGM Financial and Advent Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Wireless and IGM Financial 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 IGM Financial are associated (or correlated) with Advent Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Wireless has no effect on the direction of IGM Financial i.e., IGM Financial and Advent Wireless go up and down completely randomly.
Pair Corralation between IGM Financial and Advent Wireless
If you would invest 65.00 in Advent Wireless on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Advent Wireless or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
IGM Financial vs. Advent Wireless
Performance |
| Timeline |
| IGM Financial |
| Advent Wireless |
IGM Financial and Advent Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGM Financial and Advent Wireless
The main advantage of trading using opposite IGM Financial and Advent Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGM Financial position performs unexpectedly, Advent Wireless 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 Advent Wireless will offset losses from the drop in Advent Wireless' long position.| IGM Financial vs. CI Financial Corp | IGM Financial vs. Great West Lifeco | IGM Financial vs. iA Financial | IGM Financial vs. Power |
| Advent Wireless vs. Sparx Technology | Advent Wireless vs. Verizon Communications CDR | Advent Wireless vs. E L Financial Corp | Advent Wireless vs. SPoT 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |