Correlation Between Ivanhoe Energy and Lomiko Metals
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Lomiko Metals 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 Lomiko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Lomiko Metals, you can compare the effects of market volatilities on Ivanhoe Energy and Lomiko Metals 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 Lomiko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Lomiko Metals.
Diversification Opportunities for Ivanhoe Energy and Lomiko Metals
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ivanhoe and Lomiko is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Lomiko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lomiko Metals 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 Lomiko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lomiko Metals has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Lomiko Metals go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Lomiko Metals
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.76 times more return on investment than Lomiko Metals. However, Ivanhoe Energy is 1.31 times less risky than Lomiko Metals. It trades about 0.01 of its potential returns per unit of risk. Lomiko Metals is currently generating about -0.12 per unit of risk. If you would invest 1,468 in Ivanhoe Energy on September 1, 2024 and sell it today you would lose (138.00) from holding Ivanhoe Energy or give up 9.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Lomiko Metals
Performance |
| Timeline |
| Ivanhoe Energy |
| Lomiko Metals |
Ivanhoe Energy and Lomiko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Lomiko Metals
The main advantage of trading using opposite Ivanhoe Energy and Lomiko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Lomiko Metals 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 Lomiko Metals will offset losses from the drop in Lomiko Metals' long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Lomiko Metals vs. Sangoma Technologies Corp | Lomiko Metals vs. AGF Management Limited | Lomiko Metals vs. Metalero Mining Corp | Lomiko Metals vs. Altair Resources |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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