Correlation Between IGO and St-Georges Eco-Mining
Can any of the company-specific risk be diversified away by investing in both IGO and St-Georges Eco-Mining 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 St-Georges Eco-Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and St Georges Eco Mining Corp, you can compare the effects of market volatilities on IGO and St-Georges Eco-Mining 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 St-Georges Eco-Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and St-Georges Eco-Mining.
Diversification Opportunities for IGO and St-Georges Eco-Mining
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IGO and St-Georges is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and St Georges Eco Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St-Georges Eco-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 St-Georges Eco-Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St-Georges Eco-Mining has no effect on the direction of IGO i.e., IGO and St-Georges Eco-Mining go up and down completely randomly.
Pair Corralation between IGO and St-Georges Eco-Mining
Assuming the 90 days horizon IGO Limited is expected to generate 0.23 times more return on investment than St-Georges Eco-Mining. However, IGO Limited is 4.31 times less risky than St-Georges Eco-Mining. It trades about 0.16 of its potential returns per unit of risk. St Georges Eco Mining Corp is currently generating about 0.03 per unit of risk. If you would invest 695.00 in IGO Limited on September 4, 2024 and sell it today you would earn a total of 57.00 from holding IGO Limited or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
IGO Limited vs. St Georges Eco Mining Corp
Performance |
| Timeline |
| IGO Limited |
| St-Georges Eco-Mining |
IGO and St-Georges Eco-Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and St-Georges Eco-Mining
The main advantage of trading using opposite IGO and St-Georges Eco-Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, St-Georges Eco-Mining 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 St-Georges Eco-Mining will offset losses from the drop in St-Georges Eco-Mining's long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| St-Georges Eco-Mining vs. Qubec Nickel Corp | St-Georges Eco-Mining vs. IGO Limited | St-Georges Eco-Mining vs. Avarone Metals | St-Georges Eco-Mining vs. Adriatic Metals PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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