Correlation Between NYSE Composite and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Ivanhoe Mines 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 NYSE Composite and Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Ivanhoe Mines, you can compare the effects of market volatilities on NYSE Composite and Ivanhoe Mines 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 NYSE Composite with a short position of Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ivanhoe Mines.
Diversification Opportunities for NYSE Composite and Ivanhoe Mines
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Ivanhoe is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and NYSE Composite 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 NYSE Composite are associated (or correlated) with Ivanhoe Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Mines has no effect on the direction of NYSE Composite i.e., NYSE Composite and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between NYSE Composite and Ivanhoe Mines
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.27 times less return on investment than Ivanhoe Mines. But when comparing it to its historical volatility, NYSE Composite is 4.01 times less risky than Ivanhoe Mines. It trades about 0.11 of its potential returns per unit of risk. Ivanhoe Mines is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 827.00 in Ivanhoe Mines on August 31, 2024 and sell it today you would earn a total of 523.00 from holding Ivanhoe Mines or generate 63.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Ivanhoe Mines
Performance |
| Timeline |
NYSE Composite and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ivanhoe Mines
Pair trading matchups for Ivanhoe Mines
Pair Trading with NYSE Composite and Ivanhoe Mines
The main advantage of trading using opposite NYSE Composite and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Ivanhoe Mines 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 Mines will offset losses from the drop in Ivanhoe Mines' long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Ivanhoe Mines vs. Fury Gold Mines | Ivanhoe Mines vs. EMX Royalty Corp | Ivanhoe Mines vs. Western Copper and | Ivanhoe Mines vs. Nevada King 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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