Correlation Between Eni SpA and IGATE Corp
Can any of the company-specific risk be diversified away by investing in both Eni SpA and IGATE Corp 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 Eni SpA and IGATE Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eni SpA and IGATE Corp, you can compare the effects of market volatilities on Eni SpA and IGATE Corp 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 Eni SpA with a short position of IGATE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eni SpA and IGATE Corp.
Diversification Opportunities for Eni SpA and IGATE Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eni and IGATE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eni SpA and IGATE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGATE Corp and Eni SpA 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 Eni SpA are associated (or correlated) with IGATE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGATE Corp has no effect on the direction of Eni SpA i.e., Eni SpA and IGATE Corp go up and down completely randomly.
Pair Corralation between Eni SpA and IGATE Corp
If you would invest 1,258 in Eni SpA on January 18, 2024 and sell it today you would earn a total of 351.00 from holding Eni SpA or generate 27.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Eni SpA vs. IGATE Corp
Performance |
Timeline |
Eni SpA |
IGATE Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eni SpA and IGATE Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eni SpA and IGATE Corp
The main advantage of trading using opposite Eni SpA and IGATE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SpA position performs unexpectedly, IGATE Corp 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 IGATE Corp will offset losses from the drop in IGATE Corp's long position.The idea behind Eni SpA and IGATE Corp 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.IGATE Corp vs. Integrated Media Technology | IGATE Corp vs. CanSino Biologics | IGATE Corp vs. Anheuser Busch Inbev | IGATE Corp vs. Diageo PLC ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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