Correlation Between Skeena Resources and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both Skeena Resources 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 Skeena Resources and Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skeena Resources and Ivanhoe Mines, you can compare the effects of market volatilities on Skeena Resources 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 Skeena Resources with a short position of Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skeena Resources and Ivanhoe Mines.
Diversification Opportunities for Skeena Resources and Ivanhoe Mines
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Skeena and Ivanhoe is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Skeena Resources and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and Skeena Resources 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 Skeena Resources 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 Skeena Resources i.e., Skeena Resources and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between Skeena Resources and Ivanhoe Mines
Assuming the 90 days trading horizon Skeena Resources is expected to under-perform the Ivanhoe Mines. In addition to that, Skeena Resources is 1.22 times more volatile than Ivanhoe Mines. It trades about -0.07 of its total potential returns per unit of risk. Ivanhoe Mines is currently generating about -0.06 per unit of volatility. If you would invest 1,975 in Ivanhoe Mines on August 30, 2024 and sell it today you would lose (102.00) from holding Ivanhoe Mines or give up 5.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skeena Resources vs. Ivanhoe Mines
Performance |
| Timeline |
| Skeena Resources |
| Ivanhoe Mines |
Skeena Resources and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skeena Resources and Ivanhoe Mines
The main advantage of trading using opposite Skeena Resources and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skeena Resources 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.| Skeena Resources vs. First Majestic Silver | Skeena Resources vs. Ivanhoe Energy | Skeena Resources vs. Orezone Gold Corp | Skeena Resources vs. Faraday Copper Corp |
| Ivanhoe Mines vs. Lundin Mining | Ivanhoe Mines vs. First Quantum Minerals | Ivanhoe Mines vs. HudBay Minerals | Ivanhoe Mines vs. Eldorado Gold 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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