Correlation Between Igoria Trade and Gobarto SA
Can any of the company-specific risk be diversified away by investing in both Igoria Trade and Gobarto SA 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 Gobarto SA 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 Gobarto SA, you can compare the effects of market volatilities on Igoria Trade and Gobarto SA 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 Gobarto SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and Gobarto SA.
Diversification Opportunities for Igoria Trade and Gobarto SA
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Igoria and Gobarto is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and Gobarto SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gobarto 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 Gobarto SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gobarto SA has no effect on the direction of Igoria Trade i.e., Igoria Trade and Gobarto SA go up and down completely randomly.
Pair Corralation between Igoria Trade and Gobarto SA
Assuming the 90 days trading horizon Igoria Trade is expected to generate 1.04 times less return on investment than Gobarto SA. In addition to that, Igoria Trade is 1.15 times more volatile than Gobarto SA. It trades about 0.07 of its total potential returns per unit of risk. Gobarto SA is currently generating about 0.09 per unit of volatility. If you would invest 3,050 in Gobarto SA on September 2, 2024 and sell it today you would earn a total of 140.00 from holding Gobarto SA or generate 4.59% 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. Gobarto SA
Performance |
| Timeline |
| Igoria Trade SA |
| Gobarto SA |
Igoria Trade and Gobarto SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Igoria Trade and Gobarto SA
The main advantage of trading using opposite Igoria Trade and Gobarto SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade position performs unexpectedly, Gobarto SA 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 Gobarto SA will offset losses from the drop in Gobarto SA's long position.| Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade vs. Asseco South Eastern | Igoria Trade vs. CFI Holding SA |
| Gobarto SA vs. PMPG Polskie Media | Gobarto SA vs. Play2Chill SA | Gobarto SA vs. Tower Investments SA | Gobarto SA vs. Marie Brizard Wine |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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