Correlation Between Stone Gold and IGO
Can any of the company-specific risk be diversified away by investing in both Stone Gold 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 Stone Gold and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Gold and IGO Limited, you can compare the effects of market volatilities on Stone Gold 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 Stone Gold with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Gold and IGO.
Diversification Opportunities for Stone Gold and IGO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and IGO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Gold and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and Stone Gold 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 Stone Gold 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 Stone Gold i.e., Stone Gold and IGO go up and down completely randomly.
Pair Corralation between Stone Gold and IGO
If you would invest 680.00 in IGO Limited on September 12, 2024 and sell it today you would earn a total of 0.00 from holding IGO Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Gold vs. IGO Limited
Performance |
| Timeline |
| Stone Gold |
| IGO Limited |
Stone Gold and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Gold and IGO
The main advantage of trading using opposite Stone Gold and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Gold 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.| Stone Gold vs. BCM Resources | Stone Gold vs. Magna Mining | Stone Gold vs. Fathom Nickel | Stone Gold vs. York Harbour Metals |
| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge Copper Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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