Correlation Between Ua Multimedia and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both Ua Multimedia 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 Ua Multimedia and IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ua Multimedia and IGEN Networks Corp, you can compare the effects of market volatilities on Ua Multimedia 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 Ua Multimedia with a short position of IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ua Multimedia and IGEN Networks.
Diversification Opportunities for Ua Multimedia and IGEN Networks
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between UAMM and IGEN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ua Multimedia 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 Ua Multimedia 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 Ua Multimedia 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 Ua Multimedia i.e., Ua Multimedia and IGEN Networks go up and down completely randomly.
Pair Corralation between Ua Multimedia and IGEN Networks
If you would invest 0.22 in Ua Multimedia on August 28, 2024 and sell it today you would lose (0.02) from holding Ua Multimedia or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ua Multimedia vs. IGEN Networks Corp
Performance |
| Timeline |
| Ua Multimedia |
| IGEN Networks Corp |
Ua Multimedia and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ua Multimedia and IGEN Networks
The main advantage of trading using opposite Ua Multimedia and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ua Multimedia 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.| Ua Multimedia vs. Salesforce | Ua Multimedia vs. SAP SE ADR | Ua Multimedia vs. ServiceNow | Ua Multimedia vs. Intuit 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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