Correlation Between Ivanhoe Energy and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Copper Fox 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 Copper Fox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Copper Fox Metals, you can compare the effects of market volatilities on Ivanhoe Energy and Copper Fox 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 Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Copper Fox.
Diversification Opportunities for Ivanhoe Energy and Copper Fox
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ivanhoe and Copper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Copper Fox Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Fox Metals 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 Copper Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Fox Metals has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Copper Fox go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Copper Fox
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Copper Fox. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 3.76 times less risky than Copper Fox. The stock trades about -0.08 of its potential returns per unit of risk. The Copper Fox Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Copper Fox Metals on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Copper Fox Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ivanhoe Energy vs. Copper Fox Metals
Performance |
| Timeline |
| Ivanhoe Energy |
| Copper Fox Metals |
Ivanhoe Energy and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Copper Fox
The main advantage of trading using opposite Ivanhoe Energy and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Copper Fox 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 Copper Fox will offset losses from the drop in Copper Fox's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Copper Fox vs. First Majestic Silver | Copper Fox vs. Ivanhoe Energy | Copper Fox vs. Orezone Gold Corp | Copper Fox vs. Faraday Copper 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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