Correlation Between IAMGold and Avantis Core
Can any of the company-specific risk be diversified away by investing in both IAMGold and Avantis Core 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 IAMGold and Avantis Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IAMGold and Avantis Core Fixed, you can compare the effects of market volatilities on IAMGold and Avantis Core 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 IAMGold with a short position of Avantis Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAMGold and Avantis Core.
Diversification Opportunities for IAMGold and Avantis Core
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IAMGold and Avantis is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding IAMGold and Avantis Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis Core Fixed and IAMGold 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 IAMGold are associated (or correlated) with Avantis Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis Core Fixed has no effect on the direction of IAMGold i.e., IAMGold and Avantis Core go up and down completely randomly.
Pair Corralation between IAMGold and Avantis Core
Considering the 90-day investment horizon IAMGold is expected to generate 17.6 times more return on investment than Avantis Core. However, IAMGold is 17.6 times more volatile than Avantis Core Fixed. It trades about 0.25 of its potential returns per unit of risk. Avantis Core Fixed is currently generating about 0.14 per unit of risk. If you would invest 796.00 in IAMGold on August 19, 2025 and sell it today you would earn a total of 553.00 from holding IAMGold or generate 69.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
IAMGold vs. Avantis Core Fixed
Performance |
| Timeline |
| IAMGold |
| Avantis Core Fixed |
IAMGold and Avantis Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAMGold and Avantis Core
The main advantage of trading using opposite IAMGold and Avantis Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAMGold position performs unexpectedly, Avantis Core 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 Avantis Core will offset losses from the drop in Avantis Core's long position.The idea behind IAMGold and Avantis Core Fixed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Avantis Core vs. First Trust Exchange Traded | Avantis Core vs. AB Ultra Short | Avantis Core vs. Invesco Variable Rate | Avantis Core vs. Janus Detroit Street |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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