Correlation Between PDF Solutions and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both PDF Solutions 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 PDF Solutions and IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDF Solutions and IGEN Networks Corp, you can compare the effects of market volatilities on PDF Solutions 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 PDF Solutions with a short position of IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDF Solutions and IGEN Networks.
Diversification Opportunities for PDF Solutions and IGEN Networks
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PDF and IGEN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding PDF Solutions 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 PDF Solutions 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 PDF Solutions 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 PDF Solutions i.e., PDF Solutions and IGEN Networks go up and down completely randomly.
Pair Corralation between PDF Solutions and IGEN Networks
If you would invest 2,945 in PDF Solutions on August 28, 2024 and sell it today you would earn a total of 185.00 from holding PDF Solutions or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PDF Solutions vs. IGEN Networks Corp
Performance |
| Timeline |
| PDF Solutions |
| IGEN Networks Corp |
PDF Solutions and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDF Solutions and IGEN Networks
The main advantage of trading using opposite PDF Solutions and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDF Solutions 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.| PDF Solutions vs. Progress Software | PDF Solutions vs. PROS Holdings | PDF Solutions vs. Sapiens International | PDF Solutions vs. Meridianlink |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |