Correlation Between Ivanhoe Energy and Winshear Gold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and Winshear 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 Winshear 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 Winshear Gold Corp, you can compare the effects of market volatilities on Ivanhoe Energy and Winshear 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 Winshear Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Winshear Gold.
Diversification Opportunities for Ivanhoe Energy and Winshear Gold
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and Winshear is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Winshear Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winshear Gold Corp 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 Winshear Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winshear Gold Corp has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Winshear Gold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and Winshear Gold
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Winshear Gold. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 2.94 times less risky than Winshear Gold. The stock trades about -0.19 of its potential returns per unit of risk. The Winshear Gold Corp is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Winshear Gold Corp on August 31, 2024 and sell it today you would lose (3.00) from holding Winshear Gold Corp or give up 15.79% 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. Winshear Gold Corp
Performance |
| Timeline |
| Ivanhoe Energy |
| Winshear Gold Corp |
Ivanhoe Energy and Winshear Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and Winshear Gold
The main advantage of trading using opposite Ivanhoe Energy and Winshear Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Winshear 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 Winshear Gold will offset losses from the drop in Winshear Gold's long position.| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
| Winshear Gold vs. Atrium Mortgage Investment | Winshear Gold vs. Firan Technology Group | Winshear Gold vs. Xtract One Technologies | Winshear Gold vs. Northstar Clean Technologies |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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