Correlation Between Ivanhoe Energy and Magnum Goldcorp
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Magnum Goldcorp 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 Magnum Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Magnum Goldcorp, you can compare the effects of market volatilities on Ivanhoe Energy and Magnum Goldcorp 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 Magnum Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Magnum Goldcorp.
Diversification Opportunities for Ivanhoe Energy and Magnum Goldcorp
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and Magnum is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Magnum Goldcorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnum Goldcorp 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 Magnum Goldcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnum Goldcorp has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Magnum Goldcorp go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Magnum Goldcorp
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.13 times more return on investment than Magnum Goldcorp. However, Ivanhoe Energy is 7.59 times less risky than Magnum Goldcorp. It trades about -0.19 of its potential returns per unit of risk. Magnum Goldcorp is currently generating about -0.03 per unit of risk. If you would invest 1,516 in Ivanhoe Energy on August 26, 2024 and sell it today you would lose (166.00) from holding Ivanhoe Energy or give up 10.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Magnum Goldcorp
Performance |
| Timeline |
| Ivanhoe Energy |
| Magnum Goldcorp |
Ivanhoe Energy and Magnum Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Magnum Goldcorp
The main advantage of trading using opposite Ivanhoe Energy and Magnum Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Magnum Goldcorp 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 Magnum Goldcorp will offset losses from the drop in Magnum Goldcorp'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 |
| Magnum Goldcorp vs. 2028 Investment Grade | Magnum Goldcorp vs. Brookfield Investments | Magnum Goldcorp vs. T2 Metals Corp | Magnum Goldcorp vs. Partners Value Investments |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stocks Directory Find actively traded stocks across global markets |