Correlation Between Ivanhoe Energy and Honey Badger
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Honey Badger 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 Honey Badger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and Honey Badger Silver, you can compare the effects of market volatilities on Ivanhoe Energy and Honey Badger 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 Honey Badger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Honey Badger.
Diversification Opportunities for Ivanhoe Energy and Honey Badger
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ivanhoe and Honey is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Honey Badger Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honey Badger Silver 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 Honey Badger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honey Badger Silver has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Honey Badger go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Honey Badger
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 0.44 times more return on investment than Honey Badger. However, Ivanhoe Energy is 2.29 times less risky than Honey Badger. It trades about -0.34 of its potential returns per unit of risk. Honey Badger Silver is currently generating about -0.27 per unit of risk. If you would invest 1,552 in Ivanhoe Energy on August 29, 2024 and sell it today you would lose (324.00) from holding Ivanhoe Energy or give up 20.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. Honey Badger Silver
Performance |
| Timeline |
| Ivanhoe Energy |
| Honey Badger Silver |
Ivanhoe Energy and Honey Badger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Honey Badger
The main advantage of trading using opposite Ivanhoe Energy and Honey Badger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Honey Badger 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 Honey Badger will offset losses from the drop in Honey Badger'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 |
| Honey Badger vs. First Majestic Silver | Honey Badger vs. Ivanhoe Energy | Honey Badger vs. Orezone Gold Corp | Honey Badger vs. Faraday Copper 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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