Correlation Between Ivanhoe Energy and Champion Bear
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Champion Bear 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 Champion Bear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Champion Bear Resources, you can compare the effects of market volatilities on Ivanhoe Energy and Champion Bear 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 Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Champion Bear.
Diversification Opportunities for Ivanhoe Energy and Champion Bear
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ivanhoe and Champion is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Champion Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Bear Resources 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 Champion Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Bear Resources has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Champion Bear go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Champion Bear
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 43.61 times less return on investment than Champion Bear. But when comparing it to its historical volatility, Ivanhoe Energy is 3.59 times less risky than Champion Bear. It trades about 0.0 of its potential returns per unit of risk. Champion Bear Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Champion Bear Resources on September 12, 2024 and sell it today you would lose (4.00) from holding Champion Bear Resources or give up 57.14% 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. Champion Bear Resources
Performance |
| Timeline |
| Ivanhoe Energy |
| Champion Bear Resources |
Ivanhoe Energy and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Champion Bear
The main advantage of trading using opposite Ivanhoe Energy and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Champion Bear 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 Champion Bear will offset losses from the drop in Champion Bear's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Champion Bear vs. Earth Alive Clean | Champion Bear vs. CNJ Capital Investments | Champion Bear vs. Canadian General Investments | Champion Bear vs. Partners Value Investments |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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