Correlation Between IGO and Bluestone Resources
Can any of the company-specific risk be diversified away by investing in both IGO and Bluestone Resources 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 IGO and Bluestone Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Bluestone Resources, you can compare the effects of market volatilities on IGO and Bluestone Resources 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 IGO with a short position of Bluestone Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Bluestone Resources.
Diversification Opportunities for IGO and Bluestone Resources
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IGO and Bluestone is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Bluestone Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluestone Resources and IGO 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 IGO Limited are associated (or correlated) with Bluestone Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluestone Resources has no effect on the direction of IGO i.e., IGO and Bluestone Resources go up and down completely randomly.
Pair Corralation between IGO and Bluestone Resources
If you would invest 680.00 in IGO Limited on September 12, 2024 and sell it today you would earn a total of 0.00 from holding IGO Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IGO Limited vs. Bluestone Resources
Performance |
| Timeline |
| IGO Limited |
| Bluestone Resources |
IGO and Bluestone Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Bluestone Resources
The main advantage of trading using opposite IGO and Bluestone Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Bluestone Resources 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 Bluestone Resources will offset losses from the drop in Bluestone Resources' long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| Bluestone Resources vs. Qubec Nickel Corp | Bluestone Resources vs. IGO Limited | Bluestone Resources vs. Focus Graphite | Bluestone Resources vs. Mineral Res |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |