Correlation Between Ivanhoe Mines and Altagas Cum
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Altagas Cum 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 Mines and Altagas Cum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Mines and Altagas Cum Red, you can compare the effects of market volatilities on Ivanhoe Mines and Altagas Cum 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 Mines with a short position of Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Altagas Cum.
Diversification Opportunities for Ivanhoe Mines and Altagas Cum
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ivanhoe and Altagas is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red and Ivanhoe Mines 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 Mines are associated (or correlated) with Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Altagas Cum go up and down completely randomly.
Pair Corralation between Ivanhoe Mines and Altagas Cum
Assuming the 90 days trading horizon Ivanhoe Mines is expected to generate 3.27 times more return on investment than Altagas Cum. However, Ivanhoe Mines is 3.27 times more volatile than Altagas Cum Red. It trades about 0.07 of its potential returns per unit of risk. Altagas Cum Red is currently generating about 0.07 per unit of risk. If you would invest 1,414 in Ivanhoe Mines on September 1, 2024 and sell it today you would earn a total of 471.00 from holding Ivanhoe Mines or generate 33.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Mines vs. Altagas Cum Red
Performance |
| Timeline |
| Ivanhoe Mines |
| Altagas Cum Red |
Ivanhoe Mines and Altagas Cum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Mines and Altagas Cum
The main advantage of trading using opposite Ivanhoe Mines and Altagas Cum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, Altagas Cum 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 Altagas Cum will offset losses from the drop in Altagas Cum's long position.| Ivanhoe Mines vs. Kiplin Metals | Ivanhoe Mines vs. Pure Energy Minerals | Ivanhoe Mines vs. Noram Lithium Corp | Ivanhoe Mines vs. Minnova Corp |
| Altagas Cum vs. Data Communications Management | Altagas Cum vs. Rubicon Organics | Altagas Cum vs. Enerev5 Metals | Altagas Cum vs. MTY Food Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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