Correlation Between Ivanhoe Mines and Skeena Resources
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Skeena Resources 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 Skeena Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Mines and Skeena Resources, you can compare the effects of market volatilities on Ivanhoe Mines and Skeena Resources 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 Skeena Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Skeena Resources.
Diversification Opportunities for Ivanhoe Mines and Skeena Resources
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ivanhoe and Skeena is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Skeena Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skeena Resources 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 Skeena Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skeena Resources has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Skeena Resources go up and down completely randomly.
Pair Corralation between Ivanhoe Mines and Skeena Resources
Assuming the 90 days trading horizon Ivanhoe Mines is expected to generate 1.75 times less return on investment than Skeena Resources. But when comparing it to its historical volatility, Ivanhoe Mines is 1.48 times less risky than Skeena Resources. It trades about 0.08 of its potential returns per unit of risk. Skeena Resources is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 608.00 in Skeena Resources on August 26, 2024 and sell it today you would earn a total of 698.00 from holding Skeena Resources or generate 114.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Mines vs. Skeena Resources
Performance |
| Timeline |
| Ivanhoe Mines |
| Skeena Resources |
Ivanhoe Mines and Skeena Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Mines and Skeena Resources
The main advantage of trading using opposite Ivanhoe Mines and Skeena Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, Skeena Resources 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 Skeena Resources will offset losses from the drop in Skeena Resources' long position.| Ivanhoe Mines vs. Lundin Mining | Ivanhoe Mines vs. First Quantum Minerals | Ivanhoe Mines vs. HudBay Minerals | Ivanhoe Mines vs. Eldorado Gold Corp |
| Skeena Resources vs. First Majestic Silver | Skeena Resources vs. Ivanhoe Energy | Skeena Resources vs. Orezone Gold Corp | Skeena Resources vs. Faraday Copper 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |