Correlation Between Ivanhoe Energy and Signal Gold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Signal 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 Signal 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 Signal Gold, you can compare the effects of market volatilities on Ivanhoe Energy and Signal 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 Signal Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Signal Gold.
Diversification Opportunities for Ivanhoe Energy and Signal Gold
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ivanhoe and Signal is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Signal Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signal 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 Signal Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signal Gold has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Signal Gold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Signal Gold
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.72 times more return on investment than Signal Gold. However, Ivanhoe Energy is 1.39 times less risky than Signal Gold. It trades about 0.0 of its potential returns per unit of risk. Signal Gold is currently generating about -0.04 per unit of risk. If you would invest 1,612 in Ivanhoe Energy on August 31, 2024 and sell it today you would lose (330.00) from holding Ivanhoe Energy or give up 20.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Signal Gold
Performance |
| Timeline |
| Ivanhoe Energy |
| Signal Gold |
Ivanhoe Energy and Signal Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Signal Gold
The main advantage of trading using opposite Ivanhoe Energy and Signal Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Signal 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 Signal Gold will offset losses from the drop in Signal Gold's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Signal Gold vs. Montage Gold Corp | Signal Gold vs. Cerrado Gold Corp | Signal Gold vs. Steppe Gold | Signal Gold vs. Maritime 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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