Correlation Between Ivanhoe Energy and St Augustine
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and St Augustine 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 St Augustine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and St Augustine Gold, you can compare the effects of market volatilities on Ivanhoe Energy and St Augustine 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 St Augustine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and St Augustine.
Diversification Opportunities for Ivanhoe Energy and St Augustine
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and SAU is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and St Augustine Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Augustine Gold 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 St Augustine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Augustine Gold has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and St Augustine go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and St Augustine
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 3.47 times less return on investment than St Augustine. But when comparing it to its historical volatility, Ivanhoe Energy is 1.39 times less risky than St Augustine. It trades about 0.01 of its potential returns per unit of risk. St Augustine Gold is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7.00 in St Augustine Gold on August 26, 2024 and sell it today you would earn a total of 1.00 from holding St Augustine Gold or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. St Augustine Gold
Performance |
| Timeline |
| Ivanhoe Energy |
| St Augustine Gold |
Ivanhoe Energy and St Augustine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and St Augustine
The main advantage of trading using opposite Ivanhoe Energy and St Augustine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, St Augustine 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 St Augustine will offset losses from the drop in St Augustine'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 |
| St Augustine vs. Northcliff Resources | St Augustine vs. Lupaka Gold Corp | St Augustine vs. Angkor Resources Corp | St Augustine vs. Minco Capital 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |