Correlation Between Eskay Mining and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both Eskay Mining 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 Eskay Mining and Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eskay Mining Corp and Ivanhoe Mines, you can compare the effects of market volatilities on Eskay Mining 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 Eskay Mining with a short position of Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Ivanhoe Mines.
Diversification Opportunities for Eskay Mining and Ivanhoe Mines
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eskay and Ivanhoe is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and Eskay Mining 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 Eskay Mining 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 Eskay Mining i.e., Eskay Mining and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between Eskay Mining and Ivanhoe Mines
Assuming the 90 days horizon Eskay Mining Corp is expected to under-perform the Ivanhoe Mines. In addition to that, Eskay Mining is 1.72 times more volatile than Ivanhoe Mines. It trades about -0.05 of its total potential returns per unit of risk. Ivanhoe Mines is currently generating about 0.03 per unit of volatility. If you would invest 1,270 in Ivanhoe Mines on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Ivanhoe Mines or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eskay Mining Corp vs. Ivanhoe Mines
Performance |
| Timeline |
| Eskay Mining Corp |
| Ivanhoe Mines |
Eskay Mining and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Ivanhoe Mines
The main advantage of trading using opposite Eskay Mining and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining 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.| Eskay Mining vs. Advantage Solutions | Eskay Mining vs. Atlas Corp | Eskay Mining vs. PureCycle Technologies | Eskay Mining vs. WM Technology |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |