Correlation Between IGO and IGO
Can any of the company-specific risk be diversified away by investing in both IGO and IGO 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 IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and IGO Limited, you can compare the effects of market volatilities on IGO and IGO 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 IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and IGO.
Diversification Opportunities for IGO and IGO
Pay attention - limited upside
The 3 months correlation between IGO and IGO is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited 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 IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of IGO i.e., IGO and IGO go up and down completely randomly.
Pair Corralation between IGO and IGO
Assuming the 90 days horizon IGO Limited is expected to under-perform the IGO. But the pink sheet apears to be less risky and, when comparing its historical volatility, IGO Limited is 2.67 times less risky than IGO. The pink sheet trades about -0.04 of its potential returns per unit of risk. The IGO Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,060 in IGO Limited on August 29, 2024 and sell it today you would lose (720.00) from holding IGO Limited or give up 67.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.35% |
| Values | Daily Returns |
IGO Limited vs. IGO Limited
Performance |
| Timeline |
| IGO Limited |
| IGO Limited |
IGO and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and IGO
The main advantage of trading using opposite IGO and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, IGO 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 IGO will offset losses from the drop in IGO's long position.| IGO vs. Rockridge Resources | IGO vs. Ameriwest Lithium | IGO vs. Osisko Metals Incorporated | IGO vs. Volt Lithium Corp |
| IGO vs. Grid Metals Corp | IGO vs. First American Silver | IGO vs. Qubec Nickel Corp | IGO vs. Lithium Australia NL |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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