Correlation Between Ivanhoe Electric and Jewett Cameron
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Electric and Jewett Cameron 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 Electric and Jewett Cameron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Electric and Jewett Cameron Trading, you can compare the effects of market volatilities on Ivanhoe Electric and Jewett Cameron 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 Electric with a short position of Jewett Cameron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Electric and Jewett Cameron.
Diversification Opportunities for Ivanhoe Electric and Jewett Cameron
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ivanhoe and Jewett is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Electric and Jewett Cameron Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jewett Cameron Trading and Ivanhoe Electric 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 Electric are associated (or correlated) with Jewett Cameron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jewett Cameron Trading has no effect on the direction of Ivanhoe Electric i.e., Ivanhoe Electric and Jewett Cameron go up and down completely randomly.
Pair Corralation between Ivanhoe Electric and Jewett Cameron
Allowing for the 90-day total investment horizon Ivanhoe Electric is expected to under-perform the Jewett Cameron. In addition to that, Ivanhoe Electric is 1.47 times more volatile than Jewett Cameron Trading. It trades about -0.07 of its total potential returns per unit of risk. Jewett Cameron Trading is currently generating about 0.0 per unit of volatility. If you would invest 430.00 in Jewett Cameron Trading on September 1, 2024 and sell it today you would lose (2.00) from holding Jewett Cameron Trading or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Electric vs. Jewett Cameron Trading
Performance |
| Timeline |
| Ivanhoe Electric |
| Jewett Cameron Trading |
Ivanhoe Electric and Jewett Cameron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Electric and Jewett Cameron
The main advantage of trading using opposite Ivanhoe Electric and Jewett Cameron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Electric position performs unexpectedly, Jewett Cameron 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 Jewett Cameron will offset losses from the drop in Jewett Cameron's long position.| Ivanhoe Electric vs. Arm Holdings plc | Ivanhoe Electric vs. Suntory Beverage Food | Ivanhoe Electric vs. Keurig Dr Pepper | Ivanhoe Electric vs. SNDL Inc |
| Jewett Cameron vs. RBC Bearings Incorporated | Jewett Cameron vs. Inflection Point Acquisition | Jewett Cameron vs. Griffon | Jewett Cameron vs. Edgewell Personal Care |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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