Correlation Between Ivanhoe Energy and Globex Mining
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Globex Mining 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 Globex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Globex Mining Enterprises, you can compare the effects of market volatilities on Ivanhoe Energy and Globex Mining 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 Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Globex Mining.
Diversification Opportunities for Ivanhoe Energy and Globex Mining
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ivanhoe and Globex is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises 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 Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Globex Mining go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Globex Mining
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Globex Mining. In addition to that, Ivanhoe Energy is 1.28 times more volatile than Globex Mining Enterprises. It trades about -0.34 of its total potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.1 per unit of volatility. If you would invest 103.00 in Globex Mining Enterprises on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Globex Mining Enterprises or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Globex Mining Enterprises
Performance |
| Timeline |
| Ivanhoe Energy |
| Globex Mining Enterprises |
Ivanhoe Energy and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Globex Mining
The main advantage of trading using opposite Ivanhoe Energy and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited | Ivanhoe Energy vs. iShares Canadian HYBrid |
| Globex Mining vs. Chibougamau Independent Mines | Globex Mining vs. Entree Resources | Globex Mining vs. Solitario Exploration Royalty | Globex Mining vs. Forsys Metals 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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