Correlation Between Atreca and IGO

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

By analyzing existing cross correlation between Atreca Inc and IGO Limited, you can compare the effects of market volatilities on Atreca 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 Atreca with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreca and IGO.

Diversification Opportunities for Atreca and IGO

0.25

Correlation Coefficient

Atreca  IGO

Modest diversification

The 3 months correlation between Atreca and IGO is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Atreca Inc and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and Atreca 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 Atreca Inc 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 Atreca i.e., Atreca and IGO go up and down completely randomly.

Pair Corralation between Atreca and IGO

Given the investment horizon of 90 days Atreca Inc is expected to under-perform the IGO. In addition to that, Atreca is 3.46 times more volatile than IGO Limited. It trades about -0.04 of its total potential returns per unit of risk. IGO Limited is currently generating about -0.06 per unit of volatility. If you would invest  978.00  in IGO Limited on January 24, 2024 and sell it today you would lose (489.00) from holding IGO Limited or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.26%
Values	Daily Returns

Atreca Inc  vs.  IGO Limited

Atreca Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

IGO Limited

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IGO Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, IGO is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Atreca and IGO

The main advantage of trading using opposite Atreca and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atreca 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.

The idea behind Atreca Inc and IGO Limited 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.