Correlation Between Igoria Trade and Baked Games
Can any of the company-specific risk be diversified away by investing in both Igoria Trade and Baked Games 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 Igoria Trade and Baked Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Igoria Trade SA and Baked Games SA, you can compare the effects of market volatilities on Igoria Trade and Baked Games 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 Igoria Trade with a short position of Baked Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and Baked Games.
Diversification Opportunities for Igoria Trade and Baked Games
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Igoria and Baked is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and Baked Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baked Games SA and Igoria Trade 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 Igoria Trade SA are associated (or correlated) with Baked Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baked Games SA has no effect on the direction of Igoria Trade i.e., Igoria Trade and Baked Games go up and down completely randomly.
Pair Corralation between Igoria Trade and Baked Games
Assuming the 90 days trading horizon Igoria Trade SA is expected to under-perform the Baked Games. But the stock apears to be less risky and, when comparing its historical volatility, Igoria Trade SA is 1.74 times less risky than Baked Games. The stock trades about -0.08 of its potential returns per unit of risk. The Baked Games SA is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Baked Games SA on August 28, 2024 and sell it today you would earn a total of 57.00 from holding Baked Games SA or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Igoria Trade SA vs. Baked Games SA
Performance |
| Timeline |
| Igoria Trade SA |
| Baked Games SA |
Igoria Trade and Baked Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Igoria Trade and Baked Games
The main advantage of trading using opposite Igoria Trade and Baked Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade position performs unexpectedly, Baked Games 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 Baked Games will offset losses from the drop in Baked Games' long position.| Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade vs. Asseco South Eastern | Igoria Trade vs. Movie Games SA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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