Correlation Between Ivanhoe Energy and Trigon Metals
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Trigon Metals 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 Trigon Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Trigon Metals, you can compare the effects of market volatilities on Ivanhoe Energy and Trigon Metals 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 Trigon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Trigon Metals.
Diversification Opportunities for Ivanhoe Energy and Trigon Metals
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ivanhoe and Trigon is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Trigon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigon Metals 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 Trigon Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trigon Metals has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Trigon Metals go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Trigon Metals
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.66 times more return on investment than Trigon Metals. However, Ivanhoe Energy is 1.53 times less risky than Trigon Metals. It trades about -0.18 of its potential returns per unit of risk. Trigon Metals is currently generating about -0.24 per unit of risk. If you would invest 1,460 in Ivanhoe Energy on October 24, 2024 and sell it today you would lose (517.00) from holding Ivanhoe Energy or give up 35.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Trigon Metals
Performance |
| Timeline |
| Ivanhoe Energy |
| Trigon Metals |
Ivanhoe Energy and Trigon Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Trigon Metals
The main advantage of trading using opposite Ivanhoe Energy and Trigon Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Trigon Metals 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 Trigon Metals will offset losses from the drop in Trigon Metals' long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Trigon Metals vs. iMetal Resources | Trigon Metals vs. Mountain Boy Minerals | Trigon Metals vs. Stroud Resources | Trigon Metals vs. Golden Goliath 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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