Correlation Between Ivanhoe Electric and Noranda Aluminum
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Electric and Noranda Aluminum 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 Noranda Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Electric and Noranda Aluminum Holding, you can compare the effects of market volatilities on Ivanhoe Electric and Noranda Aluminum 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 Noranda Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Electric and Noranda Aluminum.
Diversification Opportunities for Ivanhoe Electric and Noranda Aluminum
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ivanhoe and Noranda is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Electric and Noranda Aluminum Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noranda Aluminum Holding 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 Noranda Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noranda Aluminum Holding has no effect on the direction of Ivanhoe Electric i.e., Ivanhoe Electric and Noranda Aluminum go up and down completely randomly.
Pair Corralation between Ivanhoe Electric and Noranda Aluminum
If you would invest (100.00) in Noranda Aluminum Holding on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Noranda Aluminum Holding or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ivanhoe Electric vs. Noranda Aluminum Holding
Performance |
| Timeline |
| Ivanhoe Electric |
| Noranda Aluminum Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ivanhoe Electric and Noranda Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Electric and Noranda Aluminum
The main advantage of trading using opposite Ivanhoe Electric and Noranda Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Electric position performs unexpectedly, Noranda Aluminum 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 Noranda Aluminum will offset losses from the drop in Noranda Aluminum's long position.| Ivanhoe Electric vs. Hawkins | Ivanhoe Electric vs. Sensient Technologies | Ivanhoe Electric vs. Flexible Solutions International | Ivanhoe Electric vs. First Ship Lease |
| Noranda Aluminum vs. Oatly Group AB | Noranda Aluminum vs. National Vision Holdings | Noranda Aluminum vs. Titan Machinery | Noranda Aluminum vs. Diageo PLC ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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