Correlation Between NYSE Composite and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and IGEN Networks Corp, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and IGEN Networks.
Diversification Opportunities for NYSE Composite and IGEN Networks
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and IGEN is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and IGEN Networks go up and down completely randomly.
Pair Corralation between NYSE Composite and IGEN Networks
Assuming the 90 days trading horizon NYSE Composite is expected to generate 70.53 times less return on investment than IGEN Networks. But when comparing it to its historical volatility, NYSE Composite is 103.75 times less risky than IGEN Networks. It trades about 0.14 of its potential returns per unit of risk. IGEN Networks Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.02 in IGEN Networks Corp on August 24, 2024 and sell it today you would lose (0.01) from holding IGEN Networks Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. IGEN Networks Corp
Performance |
| Timeline |
NYSE Composite and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
IGEN Networks Corp
Pair trading matchups for IGEN Networks
Pair Trading with NYSE Composite and IGEN Networks
The main advantage of trading using opposite NYSE Composite and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Akanda Corp | NYSE Composite vs. Valneva SE ADR | NYSE Composite vs. Radcom | NYSE Composite vs. Western Digital |
| IGEN Networks vs. Astra Veda | IGEN Networks vs. On4 Communications | IGEN Networks vs. AB International Group | IGEN Networks vs. Peer To Peer |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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