Correlation Between IGO and Sayona Mining
Can any of the company-specific risk be diversified away by investing in both IGO and Sayona 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 Sayona 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 Sayona Mining Limited, you can compare the effects of market volatilities on IGO and Sayona 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 Sayona Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Sayona Mining.
Diversification Opportunities for IGO and Sayona Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IGO and Sayona is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Sayona Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sayona Mining 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 Sayona Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sayona Mining Limited has no effect on the direction of IGO i.e., IGO and Sayona Mining go up and down completely randomly.
Pair Corralation between IGO and Sayona Mining
If you would invest 1.90 in Sayona Mining Limited on September 12, 2024 and sell it today you would earn a total of 0.05 from holding Sayona Mining Limited or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGO Limited vs. Sayona Mining Limited
Performance |
| Timeline |
| IGO Limited |
| Sayona Mining Limited |
IGO and Sayona Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Sayona Mining
The main advantage of trading using opposite IGO and Sayona Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Sayona 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 Sayona Mining will offset losses from the drop in Sayona Mining's long position.| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
| Sayona Mining vs. Qubec Nickel Corp | Sayona Mining vs. IGO Limited | Sayona Mining vs. Focus Graphite | Sayona Mining 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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