Correlation Between IGO and Callinex Mines
Can any of the company-specific risk be diversified away by investing in both IGO and Callinex Mines 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 Callinex Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Callinex Mines, you can compare the effects of market volatilities on IGO and Callinex Mines 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 Callinex Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Callinex Mines.
Diversification Opportunities for IGO and Callinex Mines
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between IGO and Callinex is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Callinex Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Callinex Mines 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 Callinex Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Callinex Mines has no effect on the direction of IGO i.e., IGO and Callinex Mines go up and down completely randomly.
Pair Corralation between IGO and Callinex Mines
Assuming the 90 days horizon IGO Limited is expected to generate 1.12 times more return on investment than Callinex Mines. However, IGO is 1.12 times more volatile than Callinex Mines. It trades about -0.04 of its potential returns per unit of risk. Callinex Mines is currently generating about -0.1 per unit of risk. If you would invest 1,379 in IGO Limited on September 4, 2024 and sell it today you would lose (627.00) from holding IGO Limited or give up 45.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGO Limited vs. Callinex Mines
Performance |
| Timeline |
| IGO Limited |
| Callinex Mines |
IGO and Callinex Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Callinex Mines
The main advantage of trading using opposite IGO and Callinex Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Callinex Mines 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 Callinex Mines will offset losses from the drop in Callinex Mines' long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| Callinex Mines vs. West Mining Corp | Callinex Mines vs. Flying Nickel Mining | Callinex Mines vs. Forum Energy Metals | Callinex Mines vs. Jourdan Resources |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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