Correlation Between Ivanhoe Mines and Stelmine Canada
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Stelmine Canada 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 Stelmine Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Mines and Stelmine Canada, you can compare the effects of market volatilities on Ivanhoe Mines and Stelmine Canada 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 Stelmine Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Stelmine Canada.
Diversification Opportunities for Ivanhoe Mines and Stelmine Canada
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ivanhoe and Stelmine is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Stelmine Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stelmine Canada 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 Stelmine Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stelmine Canada has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Stelmine Canada go up and down completely randomly.
Pair Corralation between Ivanhoe Mines and Stelmine Canada
Assuming the 90 days horizon Ivanhoe Mines is expected to generate 5.43 times less return on investment than Stelmine Canada. But when comparing it to its historical volatility, Ivanhoe Mines is 4.87 times less risky than Stelmine Canada. It trades about 0.03 of its potential returns per unit of risk. Stelmine Canada is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Stelmine Canada on October 24, 2024 and sell it today you would lose (11.54) from holding Stelmine Canada or give up 88.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ivanhoe Mines vs. Stelmine Canada
Performance |
| Timeline |
| Ivanhoe Mines |
| Stelmine Canada |
Ivanhoe Mines and Stelmine Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Mines and Stelmine Canada
The main advantage of trading using opposite Ivanhoe Mines and Stelmine Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, Stelmine Canada 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 Stelmine Canada will offset losses from the drop in Stelmine Canada's long position.| Ivanhoe Mines vs. Fury Gold Mines | Ivanhoe Mines vs. EMX Royalty Corp | Ivanhoe Mines vs. Western Copper and | Ivanhoe Mines vs. Nevada King Gold |
| Stelmine Canada vs. Fury Gold Mines | Stelmine Canada vs. Ivanhoe Mines | Stelmine Canada vs. Americas Silver Corp | Stelmine Canada vs. StrikePoint Gold |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |