Correlation Between IGO and Mason Graphite
Can any of the company-specific risk be diversified away by investing in both IGO and Mason Graphite 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 Mason Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Mason Graphite, you can compare the effects of market volatilities on IGO and Mason Graphite 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 Mason Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Mason Graphite.
Diversification Opportunities for IGO and Mason Graphite
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IGO and Mason is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Mason Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Graphite 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 Mason Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Graphite has no effect on the direction of IGO i.e., IGO and Mason Graphite go up and down completely randomly.
Pair Corralation between IGO and Mason Graphite
Assuming the 90 days horizon IGO Limited is expected to generate 0.12 times more return on investment than Mason Graphite. However, IGO Limited is 8.5 times less risky than Mason Graphite. It trades about -0.21 of its potential returns per unit of risk. Mason Graphite is currently generating about -0.26 per unit of risk. If you would invest 695.00 in IGO Limited on August 24, 2024 and sell it today you would lose (15.00) from holding IGO Limited or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGO Limited vs. Mason Graphite
Performance |
| Timeline |
| IGO Limited |
| Mason Graphite |
IGO and Mason Graphite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Mason Graphite
The main advantage of trading using opposite IGO and Mason Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Mason Graphite 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 Mason Graphite will offset losses from the drop in Mason Graphite's long position.The idea behind IGO Limited and Mason Graphite pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mason Graphite vs. Syrah Resources Limited | Mason Graphite vs. Nouveau Monde Graphite | Mason Graphite vs. Small Cap Core | Mason Graphite vs. Morningstar Unconstrained Allocation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |