Correlation Between EMX Royalty and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both EMX Royalty 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 EMX Royalty and Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and Ivanhoe Mines, you can compare the effects of market volatilities on EMX Royalty 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 EMX Royalty with a short position of Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and Ivanhoe Mines.
Diversification Opportunities for EMX Royalty and Ivanhoe Mines
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EMX and Ivanhoe is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and EMX Royalty 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 EMX Royalty Corp 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 EMX Royalty i.e., EMX Royalty and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between EMX Royalty and Ivanhoe Mines
Considering the 90-day investment horizon EMX Royalty is expected to generate 10.89 times less return on investment than Ivanhoe Mines. But when comparing it to its historical volatility, EMX Royalty Corp is 1.27 times less risky than Ivanhoe Mines. It trades about 0.0 of its potential returns per unit of risk. Ivanhoe Mines is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Ivanhoe Mines on September 3, 2024 and sell it today you would earn a total of 452.00 from holding Ivanhoe Mines or generate 49.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMX Royalty Corp vs. Ivanhoe Mines
Performance |
| Timeline |
| EMX Royalty Corp |
| Ivanhoe Mines |
EMX Royalty and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMX Royalty and Ivanhoe Mines
The main advantage of trading using opposite EMX Royalty and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty 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.| EMX Royalty vs. Arizona Lithium Limited | EMX Royalty vs. SPACE | EMX Royalty vs. Bayview Acquisition Corp | EMX Royalty vs. T Rowe Price |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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