Correlation Between Ivanhoe Energy and Alaska Energy
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Alaska Energy 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 Ivanhoe Energy and Alaska Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Alaska Energy Metals, you can compare the effects of market volatilities on Ivanhoe Energy and Alaska Energy 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 Ivanhoe Energy with a short position of Alaska Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Alaska Energy.
Diversification Opportunities for Ivanhoe Energy and Alaska Energy
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ivanhoe and Alaska is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Alaska Energy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Energy Metals and Ivanhoe Energy 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 Ivanhoe Energy are associated (or correlated) with Alaska Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Energy Metals has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Alaska Energy go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Alaska Energy
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.73 times more return on investment than Alaska Energy. However, Ivanhoe Energy is 1.37 times less risky than Alaska Energy. It trades about -0.11 of its potential returns per unit of risk. Alaska Energy Metals is currently generating about -0.24 per unit of risk. If you would invest 1,460 in Ivanhoe Energy on August 25, 2024 and sell it today you would lose (110.00) from holding Ivanhoe Energy or give up 7.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ivanhoe Energy vs. Alaska Energy Metals
Performance |
| Timeline |
| Ivanhoe Energy |
| Alaska Energy Metals |
Ivanhoe Energy and Alaska Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Alaska Energy
The main advantage of trading using opposite Ivanhoe Energy and Alaska Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Alaska Energy 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 Alaska Energy will offset losses from the drop in Alaska Energy's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited | Ivanhoe Energy vs. iShares Canadian HYBrid |
| Alaska Energy vs. First Majestic Silver | Alaska Energy vs. Ivanhoe Energy | Alaska Energy vs. Orezone Gold Corp | Alaska Energy vs. Faraday Copper Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |