Correlation Between Igoria Trade and Novita SA
Can any of the company-specific risk be diversified away by investing in both Igoria Trade and Novita 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 Novita 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 Novita SA, you can compare the effects of market volatilities on Igoria Trade and Novita 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 Novita SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and Novita SA.
Diversification Opportunities for Igoria Trade and Novita SA
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Igoria and Novita is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and Novita SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novita 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 Novita SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novita SA has no effect on the direction of Igoria Trade i.e., Igoria Trade and Novita SA go up and down completely randomly.
Pair Corralation between Igoria Trade and Novita SA
Assuming the 90 days trading horizon Igoria Trade SA is expected to under-perform the Novita SA. In addition to that, Igoria Trade is 1.89 times more volatile than Novita SA. It trades about -0.04 of its total potential returns per unit of risk. Novita SA is currently generating about 0.0 per unit of volatility. If you would invest 11,538 in Novita SA on September 19, 2024 and sell it today you would lose (38.00) from holding Novita SA or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Igoria Trade SA vs. Novita SA
Performance |
| Timeline |
| Igoria Trade SA |
| Novita SA |
Igoria Trade and Novita SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Igoria Trade and Novita SA
The main advantage of trading using opposite Igoria Trade and Novita SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade position performs unexpectedly, Novita 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 Novita SA will offset losses from the drop in Novita SA's long position.| Igoria Trade vs. NGG | Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Asseco South Eastern | Igoria Trade vs. HM Inwest SA |
| Novita SA vs. SOFTWARE MANSION SPOLKA | Novita SA vs. Igoria Trade SA | Novita SA vs. X Trade Brokers | Novita SA vs. PZ Cormay 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |