Correlation Between Ivanhoe Energy and Getty Copper
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Getty Copper 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 Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Getty Copper, you can compare the effects of market volatilities on Ivanhoe Energy and Getty Copper 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 Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Getty Copper.
Diversification Opportunities for Ivanhoe Energy and Getty Copper
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ivanhoe and Getty is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper 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 Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Getty Copper go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Getty Copper
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 19.04 times less return on investment than Getty Copper. But when comparing it to its historical volatility, Ivanhoe Energy is 2.22 times less risky than Getty Copper. It trades about 0.0 of its potential returns per unit of risk. Getty Copper is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Getty Copper on September 14, 2024 and sell it today you would lose (1.00) from holding Getty Copper or give up 20.0% 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. Getty Copper
Performance |
| Timeline |
| Ivanhoe Energy |
| Getty Copper |
Ivanhoe Energy and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Getty Copper
The main advantage of trading using opposite Ivanhoe Energy and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Getty Copper 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 Getty Copper will offset losses from the drop in Getty Copper's long position.The idea behind Ivanhoe Energy and Getty Copper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Getty Copper vs. Canadian General Investments | Getty Copper vs. Gamehost | Getty Copper vs. Solid Impact Investments | Getty Copper vs. East Side Games |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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