Correlation Between Savannah Resources and IGO
Can any of the company-specific risk be diversified away by investing in both Savannah Resources and IGO 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 Savannah Resources and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savannah Resources Plc and IGO Limited, you can compare the effects of market volatilities on Savannah Resources and IGO 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 Savannah Resources with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savannah Resources and IGO.
Diversification Opportunities for Savannah Resources and IGO
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Savannah and IGO is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Savannah Resources Plc and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and Savannah Resources 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 Savannah Resources Plc are associated (or correlated) with IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of Savannah Resources i.e., Savannah Resources and IGO go up and down completely randomly.
Pair Corralation between Savannah Resources and IGO
Assuming the 90 days horizon Savannah Resources Plc is expected to generate 9.09 times more return on investment than IGO. However, Savannah Resources is 9.09 times more volatile than IGO Limited. It trades about 0.16 of its potential returns per unit of risk. IGO Limited is currently generating about 0.0 per unit of risk. If you would invest 4.77 in Savannah Resources Plc on November 5, 2024 and sell it today you would earn a total of 0.93 from holding Savannah Resources Plc or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Savannah Resources Plc vs. IGO Limited
Performance |
| Timeline |
| Savannah Resources Plc |
| IGO Limited |
Savannah Resources and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savannah Resources and IGO
The main advantage of trading using opposite Savannah Resources and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savannah Resources position performs unexpectedly, IGO 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 IGO will offset losses from the drop in IGO's long position.| Savannah Resources vs. Lithium Energi Exploration | Savannah Resources vs. Critical Elements | Savannah Resources vs. International Battery Metals | Savannah Resources vs. Talga Group |
| IGO vs. Grid Metals Corp | IGO vs. First American Silver | IGO vs. Qubec Nickel Corp | IGO vs. Lithium Australia NL |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |