Correlation Between Ivanhoe Energy and Conquest Resources
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Conquest Resources 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 Conquest Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Conquest Resources, you can compare the effects of market volatilities on Ivanhoe Energy and Conquest Resources 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 Conquest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Conquest Resources.
Diversification Opportunities for Ivanhoe Energy and Conquest Resources
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ivanhoe and Conquest is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Conquest Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquest 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 Conquest Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquest Resources has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Conquest Resources go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Conquest Resources
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.42 times more return on investment than Conquest Resources. However, Ivanhoe Energy is 2.36 times less risky than Conquest Resources. It trades about 0.12 of its potential returns per unit of risk. Conquest Resources is currently generating about 0.01 per unit of risk. If you would invest 945.00 in Ivanhoe Energy on August 29, 2024 and sell it today you would earn a total of 283.00 from holding Ivanhoe Energy or generate 29.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Conquest Resources
Performance |
| Timeline |
| Ivanhoe Energy |
| Conquest Resources |
Ivanhoe Energy and Conquest Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Conquest Resources
The main advantage of trading using opposite Ivanhoe Energy and Conquest Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Conquest Resources 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 Conquest Resources will offset losses from the drop in Conquest Resources' long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Conquest Resources vs. MAG Silver Corp | Conquest Resources vs. Vizsla Silver Corp | Conquest Resources vs. Information Services | Conquest Resources vs. Arizona Gold Silver |
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.
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