Correlation Between Ivanhoe Energy and Cartier Resources
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Cartier 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 Cartier 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 Cartier Resources, you can compare the effects of market volatilities on Ivanhoe Energy and Cartier 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 Cartier Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Cartier Resources.
Diversification Opportunities for Ivanhoe Energy and Cartier Resources
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and Cartier is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Cartier Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartier 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 Cartier Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartier Resources has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Cartier Resources go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Cartier Resources
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Cartier Resources. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 1.81 times less risky than Cartier Resources. The stock trades about -0.18 of its potential returns per unit of risk. The Cartier Resources is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Cartier Resources on October 24, 2024 and sell it today you would lose (1.00) from holding Cartier Resources or give up 10.0% 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. Cartier Resources
Performance |
| Timeline |
| Ivanhoe Energy |
| Cartier Resources |
Ivanhoe Energy and Cartier Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Cartier Resources
The main advantage of trading using opposite Ivanhoe Energy and Cartier Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Cartier 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 Cartier Resources will offset losses from the drop in Cartier Resources' long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Cartier Resources vs. Galway Metals | Cartier Resources vs. Tristar Gold | Cartier Resources vs. BonTerra Resources | Cartier Resources 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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