Correlation Between Ivanhoe Mines and Questerre Energy
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Questerre 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 Questerre 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 Questerre Energy, you can compare the effects of market volatilities on Ivanhoe Mines and Questerre 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 Questerre Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Questerre Energy.
Diversification Opportunities for Ivanhoe Mines and Questerre Energy
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ivanhoe and Questerre is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Questerre Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Questerre 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 Questerre Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Questerre Energy has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Questerre Energy go up and down completely randomly.
Pair Corralation between Ivanhoe Mines and Questerre Energy
Assuming the 90 days trading horizon Ivanhoe Mines is expected to under-perform the Questerre Energy. In addition to that, Ivanhoe Mines is 1.2 times more volatile than Questerre Energy. It trades about -0.09 of its total potential returns per unit of risk. Questerre Energy is currently generating about 0.3 per unit of volatility. If you would invest 23.00 in Questerre Energy on November 27, 2024 and sell it today you would earn a total of 5.00 from holding Questerre Energy or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Mines vs. Questerre Energy
Performance |
| Timeline |
| Ivanhoe Mines |
| Questerre Energy |
Ivanhoe Mines and Questerre Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Mines and Questerre Energy
The main advantage of trading using opposite Ivanhoe Mines and Questerre Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, Questerre 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 Questerre Energy will offset losses from the drop in Questerre 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 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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