Correlation Between Ivanhoe Energy and AuQ Gold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and AuQ Gold 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 AuQ Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and AuQ Gold Mining, you can compare the effects of market volatilities on Ivanhoe Energy and AuQ Gold 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 AuQ Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and AuQ Gold.
Diversification Opportunities for Ivanhoe Energy and AuQ Gold
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ivanhoe and AuQ is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and AuQ Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AuQ Gold Mining 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 AuQ Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AuQ Gold Mining has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and AuQ Gold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and AuQ Gold
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the AuQ Gold. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 2.03 times less risky than AuQ Gold. The stock trades about -0.02 of its potential returns per unit of risk. The AuQ Gold Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 27.00 in AuQ Gold Mining on November 30, 2024 and sell it today you would lose (1.00) from holding AuQ Gold Mining or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. AuQ Gold Mining
Performance |
| Timeline |
| Ivanhoe Energy |
| AuQ Gold Mining |
Ivanhoe Energy and AuQ Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and AuQ Gold
The main advantage of trading using opposite Ivanhoe Energy and AuQ Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, AuQ Gold 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 AuQ Gold will offset losses from the drop in AuQ Gold's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| AuQ Gold vs. First Majestic Silver | AuQ Gold vs. Ivanhoe Energy | AuQ Gold vs. Flinders Resources Limited | AuQ Gold vs. Orezone Gold 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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