Correlation Between Asia Broadband and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both Asia Broadband and Ivanhoe Mines 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 Asia Broadband and Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Broadband and Ivanhoe Mines, you can compare the effects of market volatilities on Asia Broadband and Ivanhoe Mines 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 Asia Broadband with a short position of Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Broadband and Ivanhoe Mines.
Diversification Opportunities for Asia Broadband and Ivanhoe Mines
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Ivanhoe is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Asia Broadband and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and Asia Broadband 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 Asia Broadband are associated (or correlated) with Ivanhoe Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Mines has no effect on the direction of Asia Broadband i.e., Asia Broadband and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between Asia Broadband and Ivanhoe Mines
Given the investment horizon of 90 days Asia Broadband is expected to under-perform the Ivanhoe Mines. In addition to that, Asia Broadband is 1.7 times more volatile than Ivanhoe Mines. It trades about -0.06 of its total potential returns per unit of risk. Ivanhoe Mines is currently generating about 0.05 per unit of volatility. If you would invest 1,320 in Ivanhoe Mines on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Ivanhoe Mines or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asia Broadband vs. Ivanhoe Mines
Performance |
| Timeline |
| Asia Broadband |
| Ivanhoe Mines |
Asia Broadband and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Broadband and Ivanhoe Mines
The main advantage of trading using opposite Asia Broadband and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Broadband position performs unexpectedly, Ivanhoe Mines 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 Ivanhoe Mines will offset losses from the drop in Ivanhoe Mines' long position.| Asia Broadband vs. Fury Gold Mines | Asia Broadband vs. Lion Copper and | Asia Broadband vs. Trilogy Metals | Asia Broadband vs. Western Copper and |
| Ivanhoe Mines vs. Fury Gold Mines | Ivanhoe Mines vs. EMX Royalty Corp | Ivanhoe Mines vs. Western Copper and | Ivanhoe Mines vs. Nevada King Gold |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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