Correlation Between IAMGold and T Rowe
Can any of the company-specific risk be diversified away by investing in both IAMGold and T Rowe 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 T Rowe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IAMGold and T Rowe Price, you can compare the effects of market volatilities on IAMGold and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAMGold and T Rowe.
Diversification Opportunities for IAMGold and T Rowe
Poor diversification
The 3 months correlation between IAMGold and PRFDX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding IAMGold and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of IAMGold i.e., IAMGold and T Rowe go up and down completely randomly.
Pair Corralation between IAMGold and T Rowe
Considering the 90-day investment horizon IAMGold is expected to generate 5.91 times more return on investment than T Rowe. However, IAMGold is 5.91 times more volatile than T Rowe Price. It trades about 0.27 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.07 per unit of risk. If you would invest 800.00 in IAMGold on August 14, 2025 and sell it today you would earn a total of 656.50 from holding IAMGold or generate 82.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
IAMGold vs. T Rowe Price
Performance |
| Timeline |
| IAMGold |
| T Rowe Price |
IAMGold and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAMGold and T Rowe
The main advantage of trading using opposite IAMGold and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAMGold position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.The idea behind IAMGold and T Rowe Price 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.| T Rowe vs. Mfs International Value | T Rowe vs. Mfs International Value | T Rowe vs. T Rowe Price | T Rowe vs. T Rowe Price |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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