Correlation Between Ivanhoe Energy and Gratomic
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Gratomic 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 Gratomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Gratomic, you can compare the effects of market volatilities on Ivanhoe Energy and Gratomic 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 Gratomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Gratomic.
Diversification Opportunities for Ivanhoe Energy and Gratomic
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ivanhoe and Gratomic is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Gratomic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gratomic 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 Gratomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gratomic has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Gratomic go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Gratomic
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.54 times more return on investment than Gratomic. However, Ivanhoe Energy is 1.87 times less risky than Gratomic. It trades about 0.01 of its potential returns per unit of risk. Gratomic is currently generating about -0.02 per unit of risk. If you would invest 1,485 in Ivanhoe Energy on August 29, 2024 and sell it today you would lose (203.00) from holding Ivanhoe Energy or give up 13.67% 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. Gratomic
Performance |
| Timeline |
| Ivanhoe Energy |
| Gratomic |
Ivanhoe Energy and Gratomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Gratomic
The main advantage of trading using opposite Ivanhoe Energy and Gratomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Gratomic 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 Gratomic will offset losses from the drop in Gratomic's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Gratomic vs. Braille Energy Systems | Gratomic vs. Nouveau Monde Graphite | Gratomic vs. Manganese X Energy | Gratomic vs. Focus Graphite |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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