Correlation Between Ivanhoe Energy and IAMGold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and IAMGold 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 Ivanhoe Energy and IAMGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and IAMGold, you can compare the effects of market volatilities on Ivanhoe Energy and IAMGold 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 Ivanhoe Energy with a short position of IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and IAMGold.
Diversification Opportunities for Ivanhoe Energy and IAMGold
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivanhoe and IAMGold is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold and Ivanhoe Energy 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 Ivanhoe Energy are associated (or correlated) with IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and IAMGold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and IAMGold
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 1.47 times less return on investment than IAMGold. In addition to that, Ivanhoe Energy is 1.2 times more volatile than IAMGold. It trades about 0.14 of its total potential returns per unit of risk. IAMGold is currently generating about 0.25 per unit of volatility. If you would invest 1,140 in IAMGold on August 18, 2025 and sell it today you would earn a total of 788.00 from holding IAMGold or generate 69.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. IAMGold
Performance |
| Timeline |
| Ivanhoe Energy |
| IAMGold |
Ivanhoe Energy and IAMGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and IAMGold
The main advantage of trading using opposite Ivanhoe Energy and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.| Ivanhoe Energy vs. Montage Gold Corp | Ivanhoe Energy vs. Allied Gold | Ivanhoe Energy vs. Taseko Mines | Ivanhoe Energy vs. Skeena Resources |
| IAMGold vs. B2Gold Corp | IAMGold vs. Osisko Gold Ro | IAMGold vs. Eldorado Gold Corp | IAMGold vs. OceanaGold |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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