Correlation Between Ivanhoe Energy and Thor Explorations
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Thor Explorations 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 Thor Explorations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Thor Explorations, you can compare the effects of market volatilities on Ivanhoe Energy and Thor Explorations 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 Thor Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Thor Explorations.
Diversification Opportunities for Ivanhoe Energy and Thor Explorations
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ivanhoe and Thor is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Thor Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Explorations 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 Thor Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Explorations has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Thor Explorations go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Thor Explorations
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Thor Explorations. In addition to that, Ivanhoe Energy is 1.43 times more volatile than Thor Explorations. It trades about -0.32 of its total potential returns per unit of risk. Thor Explorations is currently generating about 0.27 per unit of volatility. If you would invest 31.00 in Thor Explorations on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Thor Explorations or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Thor Explorations
Performance |
| Timeline |
| Ivanhoe Energy |
| Thor Explorations |
Ivanhoe Energy and Thor Explorations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Thor Explorations
The main advantage of trading using opposite Ivanhoe Energy and Thor Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Thor Explorations 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 Thor Explorations will offset losses from the drop in Thor Explorations' long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Thor Explorations vs. Sarama Resource | Thor Explorations vs. Taranis Resources | Thor Explorations vs. Teras Resources |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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