Correlation Between IGM Financial and Network Media
Can any of the company-specific risk be diversified away by investing in both IGM Financial and Network Media 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 Network Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGM Financial and Network Media Group, you can compare the effects of market volatilities on IGM Financial and Network Media 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 Network Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGM Financial and Network Media.
Diversification Opportunities for IGM Financial and Network Media
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGM and Network is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding IGM Financial and Network Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network Media Group 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 Network Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network Media Group has no effect on the direction of IGM Financial i.e., IGM Financial and Network Media go up and down completely randomly.
Pair Corralation between IGM Financial and Network Media
Assuming the 90 days trading horizon IGM Financial is expected to generate 0.19 times more return on investment than Network Media. However, IGM Financial is 5.28 times less risky than Network Media. It trades about 0.23 of its potential returns per unit of risk. Network Media Group is currently generating about -0.17 per unit of risk. If you would invest 3,616 in IGM Financial on September 3, 2024 and sell it today you would earn a total of 1,115 from holding IGM Financial or generate 30.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGM Financial vs. Network Media Group
Performance |
| Timeline |
| IGM Financial |
| Network Media Group |
IGM Financial and Network Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGM Financial and Network Media
The main advantage of trading using opposite IGM Financial and Network Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGM Financial position performs unexpectedly, Network Media 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 Network Media will offset losses from the drop in Network Media's long position.| IGM Financial vs. CI Financial Corp | IGM Financial vs. Great West Lifeco | IGM Financial vs. iA Financial | IGM Financial vs. Power |
| Network Media vs. Telus Corp | Network Media vs. Toronto Dominion Bank | Network Media vs. TC Energy Corp | Network Media vs. Manulife Financial Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |