Correlation Between Ivanhoe Mines and Ivanhoe Energy
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Ivanhoe Energy 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 Ivanhoe Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Mines and Ivanhoe Energy, you can compare the effects of market volatilities on Ivanhoe Mines and Ivanhoe Energy 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 Ivanhoe Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Ivanhoe Energy.
Diversification Opportunities for Ivanhoe Mines and Ivanhoe Energy
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and Ivanhoe is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Ivanhoe Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Energy 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 Ivanhoe Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Energy has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Ivanhoe Energy go up and down completely randomly.
Pair Corralation between Ivanhoe Mines and Ivanhoe Energy
Assuming the 90 days trading horizon Ivanhoe Mines is expected to generate 0.66 times more return on investment than Ivanhoe Energy. However, Ivanhoe Mines is 1.51 times less risky than Ivanhoe Energy. It trades about 0.04 of its potential returns per unit of risk. Ivanhoe Energy is currently generating about -0.01 per unit of risk. If you would invest 1,163 in Ivanhoe Mines on October 19, 2024 and sell it today you would earn a total of 482.00 from holding Ivanhoe Mines or generate 41.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Mines vs. Ivanhoe Energy
Performance |
| Timeline |
| Ivanhoe Mines |
| Ivanhoe Energy |
Ivanhoe Mines and Ivanhoe Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Mines and Ivanhoe Energy
The main advantage of trading using opposite Ivanhoe Mines and Ivanhoe Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, Ivanhoe Energy 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 Ivanhoe Energy will offset losses from the drop in Ivanhoe Energy's long position.| Ivanhoe Mines vs. Lundin Mining | Ivanhoe Mines vs. First Quantum Minerals | Ivanhoe Mines vs. HudBay Minerals | Ivanhoe Mines vs. Eldorado Gold Corp |
| Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |