Correlation Between Ivanhoe Energy and InZinc Mining
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and InZinc Mining 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 InZinc Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and InZinc Mining, you can compare the effects of market volatilities on Ivanhoe Energy and InZinc Mining 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 InZinc Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and InZinc Mining.
Diversification Opportunities for Ivanhoe Energy and InZinc Mining
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ivanhoe and InZinc is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and InZinc Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InZinc Mining 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 InZinc Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InZinc Mining has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and InZinc Mining go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and InZinc Mining
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.81 times more return on investment than InZinc Mining. However, Ivanhoe Energy is 1.23 times less risky than InZinc Mining. It trades about 0.01 of its potential returns per unit of risk. InZinc Mining is currently generating about -0.01 per unit of risk. If you would invest 1,440 in Ivanhoe Energy on August 29, 2024 and sell it today you would lose (212.00) from holding Ivanhoe Energy or give up 14.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. InZinc Mining
Performance |
| Timeline |
| Ivanhoe Energy |
| InZinc Mining |
Ivanhoe Energy and InZinc Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and InZinc Mining
The main advantage of trading using opposite Ivanhoe Energy and InZinc Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, InZinc Mining 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 InZinc Mining will offset losses from the drop in InZinc Mining's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited | Ivanhoe Energy vs. iShares Canadian HYBrid |
| InZinc Mining vs. Brunswick Exploration | InZinc Mining vs. Sigma Lithium Resources | InZinc Mining vs. Emerita Resources Corp | InZinc Mining vs. Frontier Lithium |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance |