Correlation Between IGO and REDFLEX HOLDINGS
Can any of the company-specific risk be diversified away by investing in both IGO and REDFLEX HOLDINGS 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 REDFLEX HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and REDFLEX HOLDINGS LTD, you can compare the effects of market volatilities on IGO and REDFLEX HOLDINGS 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 REDFLEX HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and REDFLEX HOLDINGS.
Diversification Opportunities for IGO and REDFLEX HOLDINGS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IGO and REDFLEX is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and REDFLEX HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDFLEX HOLDINGS LTD 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 REDFLEX HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDFLEX HOLDINGS LTD has no effect on the direction of IGO i.e., IGO and REDFLEX HOLDINGS go up and down completely randomly.
Pair Corralation between IGO and REDFLEX HOLDINGS
Assuming the 90 days horizon IGO Limited is expected to under-perform the REDFLEX HOLDINGS. But the pink sheet apears to be less risky and, when comparing its historical volatility, IGO Limited is 7.56 times less risky than REDFLEX HOLDINGS. The pink sheet trades about -0.29 of its potential returns per unit of risk. The REDFLEX HOLDINGS LTD is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1.69 in REDFLEX HOLDINGS LTD on October 20, 2024 and sell it today you would earn a total of 2.31 from holding REDFLEX HOLDINGS LTD or generate 136.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
IGO Limited vs. REDFLEX HOLDINGS LTD
Performance |
| Timeline |
| IGO Limited |
| REDFLEX HOLDINGS LTD |
IGO and REDFLEX HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and REDFLEX HOLDINGS
The main advantage of trading using opposite IGO and REDFLEX HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, REDFLEX HOLDINGS 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 REDFLEX HOLDINGS will offset losses from the drop in REDFLEX HOLDINGS's long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| REDFLEX HOLDINGS vs. NETGEAR | REDFLEX HOLDINGS vs. Uber Technologies | REDFLEX HOLDINGS vs. Vita Coco | REDFLEX HOLDINGS vs. Celsius Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |