Correlation Between Peer To and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both Peer To 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 Peer To and IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peer To Peer and IGEN Networks Corp, you can compare the effects of market volatilities on Peer To 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 Peer To with a short position of IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peer To and IGEN Networks.
Diversification Opportunities for Peer To and IGEN Networks
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Peer and IGEN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Peer To Peer 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 Peer To 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 Peer To Peer 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 Peer To i.e., Peer To and IGEN Networks go up and down completely randomly.
Pair Corralation between Peer To and IGEN Networks
If you would invest 0.03 in Peer To Peer on August 24, 2024 and sell it today you would earn a total of 0.01 from holding Peer To Peer or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Peer To Peer vs. IGEN Networks Corp
Performance |
| Timeline |
| Peer To Peer |
| IGEN Networks Corp |
Peer To and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peer To and IGEN Networks
The main advantage of trading using opposite Peer To and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peer To 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.| Peer To vs. AB International Group | Peer To vs. AppYea Inc | Peer To vs. Protek Capital | Peer To vs. ANSYS Inc |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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