Correlation Between IGO and First American
Can any of the company-specific risk be diversified away by investing in both IGO and First American 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 First American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and First American Silver, you can compare the effects of market volatilities on IGO and First American 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 First American. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and First American.
Diversification Opportunities for IGO and First American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGO and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited and First American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First American 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 First American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First American Silver has no effect on the direction of IGO i.e., IGO and First American go up and down completely randomly.
Pair Corralation between IGO and First American
If you would invest 0.01 in First American Silver on September 1, 2024 and sell it today you would earn a total of 0.00 from holding First American Silver 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. First American Silver
Performance |
| Timeline |
| IGO Limited |
| First American Silver |
IGO and First American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and First American
The main advantage of trading using opposite IGO and First American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO position performs unexpectedly, First American 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 First American will offset losses from the drop in First American's long position.| IGO vs. Grid Metals Corp | IGO vs. First American Silver | IGO vs. Qubec Nickel Corp | IGO vs. Lithium Australia NL |
| First American vs. Australian Vanadium Limited | First American vs. International Lithium Corp | First American vs. Wealth Minerals | First American vs. Decade Resources |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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