Correlation Between Ivanhoe Mines and Americas Silver
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Americas Silver 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 Americas Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Mines and Americas Silver Corp, you can compare the effects of market volatilities on Ivanhoe Mines and Americas Silver 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 Americas Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Americas Silver.
Diversification Opportunities for Ivanhoe Mines and Americas Silver
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ivanhoe and Americas is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Americas Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Silver Corp 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 Americas Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Silver Corp has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Americas Silver go up and down completely randomly.
Pair Corralation between Ivanhoe Mines and Americas Silver
Assuming the 90 days horizon Ivanhoe Mines is expected to generate 0.6 times more return on investment than Americas Silver. However, Ivanhoe Mines is 1.68 times less risky than Americas Silver. It trades about 0.04 of its potential returns per unit of risk. Americas Silver Corp is currently generating about 0.01 per unit of risk. If you would invest 1,341 in Ivanhoe Mines on September 3, 2024 and sell it today you would earn a total of 18.00 from holding Ivanhoe Mines or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Mines vs. Americas Silver Corp
Performance |
| Timeline |
| Ivanhoe Mines |
| Americas Silver Corp |
Ivanhoe Mines and Americas Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Mines and Americas Silver
The main advantage of trading using opposite Ivanhoe Mines and Americas Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, Americas Silver 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 Americas Silver will offset losses from the drop in Americas Silver'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 |
| Americas Silver vs. Arizona Lithium Limited | Americas Silver vs. SPACE | Americas Silver vs. Bayview Acquisition Corp | Americas Silver vs. T Rowe Price |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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