Correlation Between IGO and Aftermath Silver
Can any of the company-specific risk be diversified away by investing in both IGO and Aftermath Silver 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 Aftermath Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Aftermath Silver, you can compare the effects of market volatilities on IGO and Aftermath Silver 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 Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Aftermath Silver.
Diversification Opportunities for IGO and Aftermath Silver
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between IGO and Aftermath is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver 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 Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of IGO i.e., IGO and Aftermath Silver go up and down completely randomly.
Pair Corralation between IGO and Aftermath Silver
Assuming the 90 days horizon IGO is expected to generate 11.61 times less return on investment than Aftermath Silver. But when comparing it to its historical volatility, IGO Limited is 1.04 times less risky than Aftermath Silver. It trades about 0.01 of its potential returns per unit of risk. Aftermath Silver is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Aftermath Silver on September 2, 2024 and sell it today you would earn a total of 17.00 from holding Aftermath Silver or generate 94.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
IGO Limited vs. Aftermath Silver
Performance |
| Timeline |
| IGO Limited |
| Aftermath Silver |
IGO and Aftermath Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Aftermath Silver
The main advantage of trading using opposite IGO and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, Aftermath Silver 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 Aftermath Silver will offset losses from the drop in Aftermath Silver's long position.| IGO vs. Grid Metals Corp | IGO vs. First American Silver | IGO vs. Qubec Nickel Corp | IGO vs. Lithium Australia NL |
| Aftermath Silver vs. ATT Inc | Aftermath Silver vs. Merck Company | Aftermath Silver vs. Walt Disney | Aftermath Silver vs. Caterpillar |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |