Correlation Between Bullion Gold and IGO
Can any of the company-specific risk be diversified away by investing in both Bullion 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 Bullion Gold and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bullion Gold Resources and IGO Limited, you can compare the effects of market volatilities on Bullion 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 Bullion Gold with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bullion Gold and IGO.
Diversification Opportunities for Bullion Gold and IGO
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bullion and IGO is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bullion Gold Resources and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and Bullion 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 Bullion Gold Resources 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 Bullion Gold i.e., Bullion Gold and IGO go up and down completely randomly.
Pair Corralation between Bullion Gold and IGO
If you would invest 1.84 in Bullion Gold Resources on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Bullion Gold Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bullion Gold Resources vs. IGO Limited
Performance |
| Timeline |
| Bullion Gold Resources |
| IGO Limited |
Bullion Gold and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bullion Gold and IGO
The main advantage of trading using opposite Bullion Gold and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bullion 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.| Bullion Gold vs. Qubec Nickel Corp | Bullion Gold vs. IGO Limited | Bullion Gold vs. Avarone Metals | Bullion Gold vs. Adriatic Metals PLC |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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