Correlation Between Ivanhoe Mines and NGEx Minerals
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and NGEx Minerals 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 NGEx Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Mines and NGEx Minerals, you can compare the effects of market volatilities on Ivanhoe Mines and NGEx Minerals 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 NGEx Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and NGEx Minerals.
Diversification Opportunities for Ivanhoe Mines and NGEx Minerals
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ivanhoe and NGEx is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and NGEx Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGEx Minerals 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 NGEx Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGEx Minerals has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and NGEx Minerals go up and down completely randomly.
Pair Corralation between Ivanhoe Mines and NGEx Minerals
Assuming the 90 days trading horizon Ivanhoe Mines is expected to under-perform the NGEx Minerals. In addition to that, Ivanhoe Mines is 1.17 times more volatile than NGEx Minerals. It trades about -0.16 of its total potential returns per unit of risk. NGEx Minerals is currently generating about -0.06 per unit of volatility. If you would invest 1,354 in NGEx Minerals on November 7, 2024 and sell it today you would lose (49.00) from holding NGEx Minerals or give up 3.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Ivanhoe Mines vs. NGEx Minerals
Performance |
| Timeline |
| Ivanhoe Mines |
| NGEx Minerals |
Ivanhoe Mines and NGEx Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Mines and NGEx Minerals
The main advantage of trading using opposite Ivanhoe Mines and NGEx Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, NGEx Minerals 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 NGEx Minerals will offset losses from the drop in NGEx Minerals' long position.| Ivanhoe Mines vs. Lundin Mining | Ivanhoe Mines vs. First Quantum Minerals | Ivanhoe Mines vs. HudBay Minerals | Ivanhoe Mines vs. Eldorado Gold Corp |
| NGEx Minerals vs. Champion Gaming Group | NGEx Minerals vs. 2028 Investment Grade | NGEx Minerals vs. Quipt Home Medical | NGEx Minerals vs. Economic Investment Trust |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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