Correlation Between Igoria Trade and Novina SA
Can any of the company-specific risk be diversified away by investing in both Igoria Trade and Novina 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 Novina 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 Novina SA, you can compare the effects of market volatilities on Igoria Trade and Novina 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 Novina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and Novina SA.
Diversification Opportunities for Igoria Trade and Novina SA
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Igoria and Novina is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and Novina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novina 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 Novina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novina SA has no effect on the direction of Igoria Trade i.e., Igoria Trade and Novina SA go up and down completely randomly.
Pair Corralation between Igoria Trade and Novina SA
Assuming the 90 days trading horizon Igoria Trade SA is expected to generate 0.98 times more return on investment than Novina SA. However, Igoria Trade SA is 1.02 times less risky than Novina SA. It trades about -0.08 of its potential returns per unit of risk. Novina SA is currently generating about -0.11 per unit of risk. If you would invest 26.00 in Igoria Trade SA on August 28, 2024 and sell it today you would lose (2.00) from holding Igoria Trade SA or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Igoria Trade SA vs. Novina SA
Performance |
| Timeline |
| Igoria Trade SA |
| Novina SA |
Igoria Trade and Novina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Igoria Trade and Novina SA
The main advantage of trading using opposite Igoria Trade and Novina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade position performs unexpectedly, Novina 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 Novina SA will offset losses from the drop in Novina 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. Movie Games SA |
| Novina SA vs. Play2Chill SA | Novina SA vs. MCI Management SA | Novina SA vs. Igoria Trade SA | Novina SA vs. Noble Financials 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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