Correlation Between Igoria Trade and UF Games
Can any of the company-specific risk be diversified away by investing in both Igoria Trade and UF 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 UF 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 UF Games SA, you can compare the effects of market volatilities on Igoria Trade and UF 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 UF Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and UF Games.
Diversification Opportunities for Igoria Trade and UF Games
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Igoria and UFG is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and UF Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UF 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 UF Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UF Games SA has no effect on the direction of Igoria Trade i.e., Igoria Trade and UF Games go up and down completely randomly.
Pair Corralation between Igoria Trade and UF Games
Assuming the 90 days trading horizon Igoria Trade SA is expected to generate 2.73 times more return on investment than UF Games. However, Igoria Trade is 2.73 times more volatile than UF Games SA. It trades about -0.08 of its potential returns per unit of risk. UF Games SA is currently generating about -0.42 per unit of risk. If you would invest 26.00 in Igoria Trade SA on August 29, 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 Together |
| Strength | Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Igoria Trade SA vs. UF Games SA
Performance |
| Timeline |
| Igoria Trade SA |
| UF Games SA |
Igoria Trade and UF Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Igoria Trade and UF Games
The main advantage of trading using opposite Igoria Trade and UF Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade position performs unexpectedly, UF 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 UF Games will offset losses from the drop in UF 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 |
| UF Games vs. Skyline Investment SA | UF Games vs. Medicofarma Biotech SA | UF Games vs. Saule Technologies SA | UF Games vs. SOFTWARE MANSION SPOLKA |
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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