Correlation Between Live Motion and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both Live Motion and Igoria Trade 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 Live Motion and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Motion Games and Igoria Trade SA, you can compare the effects of market volatilities on Live Motion and Igoria Trade 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 Live Motion with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Motion and Igoria Trade.
Diversification Opportunities for Live Motion and Igoria Trade
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Live and Igoria is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Live Motion Games and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade SA and Live Motion 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 Live Motion Games are associated (or correlated) with Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of Live Motion i.e., Live Motion and Igoria Trade go up and down completely randomly.
Pair Corralation between Live Motion and Igoria Trade
Assuming the 90 days trading horizon Live Motion Games is expected to under-perform the Igoria Trade. In addition to that, Live Motion is 2.11 times more volatile than Igoria Trade SA. It trades about -0.08 of its total potential returns per unit of risk. Igoria Trade SA is currently generating about -0.03 per unit of volatility. If you would invest 33.00 in Igoria Trade SA on September 3, 2024 and sell it today you would lose (6.00) from holding Igoria Trade SA or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.03% |
| Values | Daily Returns |
Live Motion Games vs. Igoria Trade SA
Performance |
| Timeline |
| Live Motion Games |
| Igoria Trade SA |
Live Motion and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Motion and Igoria Trade
The main advantage of trading using opposite Live Motion and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Motion position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade's long position.| Live Motion vs. ECC Games SA | Live Motion vs. Asseco Business Solutions | Live Motion vs. Detalion Games SA | Live Motion vs. Kogeneracja SA |
| Igoria Trade vs. Echo Investment SA | Igoria Trade vs. UF Games SA | Igoria Trade vs. Play2Chill SA | Igoria Trade vs. Movie Games SA |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance |