Correlation Between Aris Gold and Ivanhoe Energy
Can any of the company-specific risk be diversified away by investing in both Aris Gold and Ivanhoe Energy 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 Aris Gold and Ivanhoe Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aris Gold and Ivanhoe Energy, you can compare the effects of market volatilities on Aris Gold and Ivanhoe Energy 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 Aris Gold with a short position of Ivanhoe Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aris Gold and Ivanhoe Energy.
Diversification Opportunities for Aris Gold and Ivanhoe Energy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aris and Ivanhoe is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aris Gold and Ivanhoe Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Energy and Aris Gold 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 Aris Gold are associated (or correlated) with Ivanhoe Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Energy has no effect on the direction of Aris Gold i.e., Aris Gold and Ivanhoe Energy go up and down completely randomly.
Pair Corralation between Aris Gold and Ivanhoe Energy
Assuming the 90 days horizon Aris Gold is expected to generate 1.33 times more return on investment than Ivanhoe Energy. However, Aris Gold is 1.33 times more volatile than Ivanhoe Energy. It trades about 0.19 of its potential returns per unit of risk. Ivanhoe Energy is currently generating about 0.15 per unit of risk. If you would invest 31.00 in Aris Gold on August 15, 2025 and sell it today you would earn a total of 24.00 from holding Aris Gold or generate 77.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aris Gold vs. Ivanhoe Energy
Performance |
| Timeline |
| Aris Gold |
| Ivanhoe Energy |
Aris Gold and Ivanhoe Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aris Gold and Ivanhoe Energy
The main advantage of trading using opposite Aris Gold and Ivanhoe Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aris Gold position performs unexpectedly, Ivanhoe Energy 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 Energy will offset losses from the drop in Ivanhoe Energy's long position.| Aris Gold vs. Eloro Resources | Aris Gold vs. Orosur Mining | Aris Gold vs. Soma Gold Corp | Aris Gold vs. Minaurum Gold |
| Ivanhoe Energy vs. Montage Gold Corp | Ivanhoe Energy vs. Allied Gold | Ivanhoe Energy vs. Taseko Mines | Ivanhoe Energy vs. Skeena Resources |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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