Correlation Between Igoria Trade and X Trade

Can any of the company-specific risk be diversified away by investing in both Igoria Trade and X Trade 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 Igoria Trade and X Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Igoria Trade SA and X Trade Brokers, you can compare the effects of market volatilities on Igoria Trade and X Trade 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 Igoria Trade with a short position of X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and X Trade.

Diversification Opportunities for Igoria Trade and X Trade

-0.48

Correlation Coefficient

Igoria Trade  X Trade

Very good diversification

The 3 months correlation between Igoria and XTB is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade SA and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers and Igoria Trade 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 Igoria Trade SA are associated (or correlated) with X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Igoria Trade i.e., Igoria Trade and X Trade go up and down completely randomly.

Pair Corralation between Igoria Trade and X Trade

Assuming the 90 days trading horizon Igoria Trade is expected to generate 1.32 times less return on investment than X Trade. In addition to that, Igoria Trade is 1.7 times more volatile than X Trade Brokers. It trades about 0.02 of its total potential returns per unit of risk. X Trade Brokers is currently generating about 0.04 per unit of volatility. If you would invest  6,820  in X Trade Brokers on September 3, 2024 and sell it today you would earn a total of  262.00  from holding X Trade Brokers or generate 3.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Igoria Trade SA  vs.  X Trade Brokers

Igoria Trade SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Igoria Trade SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Igoria Trade is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

X Trade Brokers

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in X Trade Brokers are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, X Trade is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Igoria Trade and X Trade

The main advantage of trading using opposite Igoria Trade and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria Trade position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.

The idea behind Igoria Trade SA and X Trade Brokers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.