Correlation Between IGO and Group Eleven
Can any of the company-specific risk be diversified away by investing in both IGO and Group Eleven 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 Group Eleven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Group Eleven Resources, you can compare the effects of market volatilities on IGO and Group Eleven 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 Group Eleven. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Group Eleven.
Diversification Opportunities for IGO and Group Eleven
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between IGO and Group is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Group Eleven Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Eleven 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 Group Eleven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Eleven Resources has no effect on the direction of IGO i.e., IGO and Group Eleven go up and down completely randomly.
Pair Corralation between IGO and Group Eleven
Assuming the 90 days horizon IGO Limited is expected to under-perform the Group Eleven. But the pink sheet apears to be less risky and, when comparing its historical volatility, IGO Limited is 2.18 times less risky than Group Eleven. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Group Eleven Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Group Eleven Resources on December 4, 2024 and sell it today you would lose (2.00) from holding Group Eleven Resources or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.85% |
| Values | Daily Returns |
IGO Limited vs. Group Eleven Resources
Performance |
| Timeline |
| IGO Limited |
| Group Eleven Resources |
IGO and Group Eleven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Group Eleven
The main advantage of trading using opposite IGO and Group Eleven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Group Eleven 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 Group Eleven will offset losses from the drop in Group Eleven's long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| Group Eleven vs. Tinka Resources Limited | Group Eleven vs. Neo Battery Materials | Group Eleven vs. United States Antimony | Group Eleven vs. NioCorp Developments Ltd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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