Correlation Between Ivanhoe Energy and Q Gold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Q Gold 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 Q Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Q Gold Resources, you can compare the effects of market volatilities on Ivanhoe Energy and Q Gold 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 Q Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Q Gold.
Diversification Opportunities for Ivanhoe Energy and Q Gold
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ivanhoe and QGR is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Q Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q Gold Resources 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 Q Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q Gold Resources has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Q Gold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Q Gold
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.37 times more return on investment than Q Gold. However, Ivanhoe Energy is 2.69 times less risky than Q Gold. It trades about 0.1 of its potential returns per unit of risk. Q Gold Resources is currently generating about 0.0 per unit of risk. If you would invest 1,143 in Ivanhoe Energy on August 30, 2024 and sell it today you would earn a total of 139.00 from holding Ivanhoe Energy or generate 12.16% 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. Q Gold Resources
Performance |
| Timeline |
| Ivanhoe Energy |
| Q Gold Resources |
Ivanhoe Energy and Q Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Q Gold
The main advantage of trading using opposite Ivanhoe Energy and Q Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Q Gold 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 Q Gold will offset losses from the drop in Q Gold's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Q Gold vs. First Majestic Silver | Q Gold vs. Ivanhoe Energy | Q Gold vs. Orezone Gold Corp | Q Gold vs. Faraday Copper 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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