Correlation Between IGO and Northern Sphere
Can any of the company-specific risk be diversified away by investing in both IGO and Northern Sphere 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 Northern Sphere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Northern Sphere Mining, you can compare the effects of market volatilities on IGO and Northern Sphere 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 Northern Sphere. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Northern Sphere.
Diversification Opportunities for IGO and Northern Sphere
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGO and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Northern Sphere Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Sphere Mining 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 Northern Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Sphere Mining has no effect on the direction of IGO i.e., IGO and Northern Sphere go up and down completely randomly.
Pair Corralation between IGO and Northern Sphere
If you would invest 0.01 in Northern Sphere Mining on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Northern Sphere Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IGO Limited vs. Northern Sphere Mining
Performance |
| Timeline |
| IGO Limited |
| Northern Sphere Mining |
IGO and Northern Sphere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Northern Sphere
The main advantage of trading using opposite IGO and Northern Sphere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Northern Sphere 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 Northern Sphere will offset losses from the drop in Northern Sphere's long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| Northern Sphere vs. Qubec Nickel Corp | Northern Sphere vs. IGO Limited | Northern Sphere vs. Focus Graphite | Northern Sphere 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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