Correlation Between Mesa Air and Ivanhoe Electric
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Ivanhoe Electric 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 Mesa Air and Ivanhoe Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesa Air Group and Ivanhoe Electric, you can compare the effects of market volatilities on Mesa Air and Ivanhoe Electric 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 Mesa Air with a short position of Ivanhoe Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Ivanhoe Electric.
Diversification Opportunities for Mesa Air and Ivanhoe Electric
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mesa and Ivanhoe is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Ivanhoe Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Electric and Mesa Air 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 Mesa Air Group are associated (or correlated) with Ivanhoe Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Electric has no effect on the direction of Mesa Air i.e., Mesa Air and Ivanhoe Electric go up and down completely randomly.
Pair Corralation between Mesa Air and Ivanhoe Electric
Given the investment horizon of 90 days Mesa Air Group is expected to generate 0.86 times more return on investment than Ivanhoe Electric. However, Mesa Air Group is 1.16 times less risky than Ivanhoe Electric. It trades about -0.12 of its potential returns per unit of risk. Ivanhoe Electric is currently generating about -0.16 per unit of risk. If you would invest 94.00 in Mesa Air Group on August 24, 2024 and sell it today you would lose (7.00) from holding Mesa Air Group or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Ivanhoe Electric
Performance |
| Timeline |
| Mesa Air Group |
| Ivanhoe Electric |
Mesa Air and Ivanhoe Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Ivanhoe Electric
The main advantage of trading using opposite Mesa Air and Ivanhoe Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Ivanhoe Electric 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 Ivanhoe Electric will offset losses from the drop in Ivanhoe Electric's long position.| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
| Ivanhoe Electric vs. Apogee Enterprises | Ivanhoe Electric vs. SmartStop Self Storage | Ivanhoe Electric vs. Mesa Air Group | Ivanhoe Electric vs. Nextplat 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |