Correlation Between Ivanhoe Energy and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Ivanhoe Mines 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 Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Ivanhoe Mines, you can compare the effects of market volatilities on Ivanhoe Energy and Ivanhoe Mines 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 Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Ivanhoe Mines.
Diversification Opportunities for Ivanhoe Energy and Ivanhoe Mines
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ivanhoe and Ivanhoe is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines 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 Ivanhoe Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Mines has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Ivanhoe Mines
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Ivanhoe Mines. In addition to that, Ivanhoe Energy is 1.03 times more volatile than Ivanhoe Mines. It trades about -0.08 of its total potential returns per unit of risk. Ivanhoe Mines is currently generating about 0.05 per unit of volatility. If you would invest 1,841 in Ivanhoe Mines on September 1, 2024 and sell it today you would earn a total of 44.00 from holding Ivanhoe Mines or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Ivanhoe Mines
Performance |
| Timeline |
| Ivanhoe Energy |
| Ivanhoe Mines |
Ivanhoe Energy and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Ivanhoe Mines
The main advantage of trading using opposite Ivanhoe Energy and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Ivanhoe Mines 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 Ivanhoe Mines will offset losses from the drop in Ivanhoe Mines' long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Ivanhoe Mines vs. Kiplin Metals | Ivanhoe Mines vs. Pure Energy Minerals | Ivanhoe Mines vs. Noram Lithium Corp | Ivanhoe Mines vs. Minnova 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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