Correlation Between Ivanhoe Energy and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and SSR Mining 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 SSR Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and SSR Mining, you can compare the effects of market volatilities on Ivanhoe Energy and SSR Mining 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and SSR Mining.
Diversification Opportunities for Ivanhoe Energy and SSR Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and SSR is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and SSR Mining go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and SSR Mining
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 1.11 times more return on investment than SSR Mining. However, Ivanhoe Energy is 1.11 times more volatile than SSR Mining. It trades about 0.01 of its potential returns per unit of risk. SSR Mining is currently generating about -0.03 per unit of risk. If you would invest 1,550 in Ivanhoe Energy on August 24, 2024 and sell it today you would lose (200.00) from holding Ivanhoe Energy or give up 12.9% 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. SSR Mining
Performance |
| Timeline |
| Ivanhoe Energy |
| SSR Mining |
Ivanhoe Energy and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and SSR Mining
The main advantage of trading using opposite Ivanhoe Energy and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| SSR Mining vs. Pan American Silver | SSR Mining vs. MAG Silver Corp | SSR Mining vs. Osisko Gold Ro | SSR Mining vs. Sandstorm Gold Ltd |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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