Correlation Between Ivanhoe Energy and Banyan Gold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Banyan 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 Banyan 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 Banyan Gold Corp, you can compare the effects of market volatilities on Ivanhoe Energy and Banyan 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 Banyan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Banyan Gold.
Diversification Opportunities for Ivanhoe Energy and Banyan Gold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and Banyan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Banyan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banyan Gold Corp 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 Banyan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banyan Gold Corp has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Banyan Gold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Banyan Gold
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 1.13 times more return on investment than Banyan Gold. However, Ivanhoe Energy is 1.13 times more volatile than Banyan Gold Corp. It trades about 0.01 of its potential returns per unit of risk. Banyan Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 1,490 in Ivanhoe Energy on August 30, 2024 and sell it today you would lose (208.00) from holding Ivanhoe Energy or give up 13.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Banyan Gold Corp
Performance |
| Timeline |
| Ivanhoe Energy |
| Banyan Gold Corp |
Ivanhoe Energy and Banyan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Banyan Gold
The main advantage of trading using opposite Ivanhoe Energy and Banyan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Banyan 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 Banyan Gold will offset losses from the drop in Banyan Gold's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Banyan Gold vs. Galway Metals | Banyan Gold vs. Rockhaven Resources | Banyan Gold vs. Cartier Resources | Banyan Gold vs. Maritime Resources 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |