Correlation Between Model N and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both Model N and IGEN Networks 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 Model N and IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Model N and IGEN Networks Corp, you can compare the effects of market volatilities on Model N and IGEN Networks 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 Model N with a short position of IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Model N and IGEN Networks.
Diversification Opportunities for Model N and IGEN Networks
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Model and IGEN is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Model N and IGEN Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGEN Networks Corp and Model N 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 Model N are associated (or correlated) with IGEN Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGEN Networks Corp has no effect on the direction of Model N i.e., Model N and IGEN Networks go up and down completely randomly.
Pair Corralation between Model N and IGEN Networks
If you would invest 0.01 in IGEN Networks Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding IGEN Networks Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Model N vs. IGEN Networks Corp
Performance |
| Timeline |
| Model N |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IGEN Networks Corp |
Model N and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Model N and IGEN Networks
The main advantage of trading using opposite Model N and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Model N position performs unexpectedly, IGEN Networks 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 IGEN Networks will offset losses from the drop in IGEN Networks' long position.The idea behind Model N and IGEN Networks Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IGEN Networks vs. Salesforce | IGEN Networks vs. SAP SE ADR | IGEN Networks vs. ServiceNow | IGEN Networks vs. Intuit Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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