Correlation Between Ivanhoe Energy and Hawkeye Gold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Hawkeye Gold 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 Hawkeye Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Hawkeye Gold and, you can compare the effects of market volatilities on Ivanhoe Energy and Hawkeye Gold 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 Hawkeye Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Hawkeye Gold.
Diversification Opportunities for Ivanhoe Energy and Hawkeye Gold
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ivanhoe and Hawkeye is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Hawkeye Gold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkeye Gold 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 Hawkeye Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkeye Gold has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Hawkeye Gold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Hawkeye Gold
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.62 times more return on investment than Hawkeye Gold. However, Ivanhoe Energy is 1.6 times less risky than Hawkeye Gold. It trades about 0.02 of its potential returns per unit of risk. Hawkeye Gold and is currently generating about -0.22 per unit of risk. If you would invest 914.00 in Ivanhoe Energy on November 27, 2024 and sell it today you would earn a total of 1.00 from holding Ivanhoe Energy or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Hawkeye Gold and
Performance |
| Timeline |
| Ivanhoe Energy |
| Hawkeye Gold |
Ivanhoe Energy and Hawkeye Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Hawkeye Gold
The main advantage of trading using opposite Ivanhoe Energy and Hawkeye Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Hawkeye Gold 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 Hawkeye Gold will offset losses from the drop in Hawkeye Gold's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Hawkeye Gold vs. Northstar Clean Technologies | Hawkeye Gold vs. Sparx Technology | Hawkeye Gold vs. CVW CleanTech | Hawkeye Gold vs. Mayfair Acquisition |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |