Correlation Between Ivanhoe Energy and Mandalay Resources
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Mandalay Resources 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 Mandalay Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Mandalay Resources Corp, you can compare the effects of market volatilities on Ivanhoe Energy and Mandalay Resources 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 Mandalay Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Mandalay Resources.
Diversification Opportunities for Ivanhoe Energy and Mandalay Resources
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ivanhoe and Mandalay is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Mandalay Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mandalay Resources Corp 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 Mandalay Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mandalay Resources Corp has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Mandalay Resources go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Mandalay Resources
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Mandalay Resources. In addition to that, Ivanhoe Energy is 1.04 times more volatile than Mandalay Resources Corp. It trades about -0.23 of its total potential returns per unit of risk. Mandalay Resources Corp is currently generating about 0.18 per unit of volatility. If you would invest 333.00 in Mandalay Resources Corp on November 2, 2024 and sell it today you would earn a total of 134.00 from holding Mandalay Resources Corp or generate 40.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Mandalay Resources Corp
Performance |
| Timeline |
| Ivanhoe Energy |
| Mandalay Resources Corp |
Ivanhoe Energy and Mandalay Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Mandalay Resources
The main advantage of trading using opposite Ivanhoe Energy and Mandalay Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Mandalay Resources 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 Mandalay Resources will offset losses from the drop in Mandalay Resources' long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Mandalay Resources vs. North Arrow Minerals | Mandalay Resources vs. International Tower Hill | Mandalay Resources vs. Jade Leader Corp | Mandalay Resources vs. Morien Resources 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |