Correlation Between Ivanhoe Energy and Aston Bay
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Aston Bay 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 Aston Bay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Aston Bay Holdings, you can compare the effects of market volatilities on Ivanhoe Energy and Aston Bay 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 Aston Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Aston Bay.
Diversification Opportunities for Ivanhoe Energy and Aston Bay
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ivanhoe and Aston is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Aston Bay Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Bay Holdings 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 Aston Bay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Bay Holdings has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Aston Bay go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Aston Bay
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Aston Bay. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 2.14 times less risky than Aston Bay. The stock trades about -0.39 of its potential returns per unit of risk. The Aston Bay Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Aston Bay Holdings on November 2, 2024 and sell it today you would earn a total of 0.50 from holding Aston Bay Holdings or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Aston Bay Holdings
Performance |
| Timeline |
| Ivanhoe Energy |
| Aston Bay Holdings |
Ivanhoe Energy and Aston Bay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Aston Bay
The main advantage of trading using opposite Ivanhoe Energy and Aston Bay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Aston Bay 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 Aston Bay will offset losses from the drop in Aston Bay's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Aston Bay vs. Laramide Resources | Aston Bay vs. Chibougamau Independent Mines | Aston Bay vs. Avrupa Minerals | Aston Bay vs. Thunderstruck Resources |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |