Correlation Between York Harbour and IGO
Can any of the company-specific risk be diversified away by investing in both York Harbour 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 York Harbour and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between York Harbour Metals and IGO Limited, you can compare the effects of market volatilities on York Harbour 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 York Harbour with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of York Harbour and IGO.
Diversification Opportunities for York Harbour and IGO
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between York and IGO is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding York Harbour Metals and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and York Harbour 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 York Harbour Metals 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 York Harbour i.e., York Harbour and IGO go up and down completely randomly.
Pair Corralation between York Harbour and IGO
If you would invest 5.45 in York Harbour Metals on September 12, 2024 and sell it today you would lose (2.39) from holding York Harbour Metals or give up 43.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
York Harbour Metals vs. IGO Limited
Performance |
| Timeline |
| York Harbour Metals |
| IGO Limited |
York Harbour and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with York Harbour and IGO
The main advantage of trading using opposite York Harbour and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if York Harbour 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.| York Harbour vs. Qubec Nickel Corp | York Harbour vs. IGO Limited | York Harbour vs. Focus Graphite | York Harbour vs. Mineral Res |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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