Correlation Between IGM Financial and Champion Gaming
Can any of the company-specific risk be diversified away by investing in both IGM Financial and Champion Gaming 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 Champion Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGM Financial and Champion Gaming Group, you can compare the effects of market volatilities on IGM Financial and Champion Gaming 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 Champion Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGM Financial and Champion Gaming.
Diversification Opportunities for IGM Financial and Champion Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGM and Champion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IGM Financial and Champion Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Gaming 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 Champion Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Gaming Group has no effect on the direction of IGM Financial i.e., IGM Financial and Champion Gaming go up and down completely randomly.
Pair Corralation between IGM Financial and Champion Gaming
If you would invest 4,233 in IGM Financial on September 5, 2024 and sell it today you would earn a total of 516.00 from holding IGM Financial or generate 12.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
IGM Financial vs. Champion Gaming Group
Performance |
Timeline |
IGM Financial |
Champion Gaming Group |
IGM Financial and Champion Gaming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IGM Financial and Champion Gaming
The main advantage of trading using opposite IGM Financial and Champion Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGM Financial position performs unexpectedly, Champion Gaming 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 Champion Gaming will offset losses from the drop in Champion Gaming's long position.IGM Financial vs. CI Financial Corp | IGM Financial vs. Great West Lifeco | IGM Financial vs. iA Financial | IGM Financial vs. Power |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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