Correlation Between Ivanhoe Energy and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and McEwen Mining 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 McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and McEwen Mining, you can compare the effects of market volatilities on Ivanhoe Energy and McEwen Mining 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 McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and McEwen Mining.
Diversification Opportunities for Ivanhoe Energy and McEwen Mining
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ivanhoe and McEwen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining 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 McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and McEwen Mining go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and McEwen Mining
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the McEwen Mining. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 1.06 times less risky than McEwen Mining. The stock trades about -0.23 of its potential returns per unit of risk. The McEwen Mining is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 2,853 in McEwen Mining on August 14, 2025 and sell it today you would lose (455.00) from holding McEwen Mining or give up 15.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. McEwen Mining
Performance |
| Timeline |
| Ivanhoe Energy |
| McEwen Mining |
Ivanhoe Energy and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and McEwen Mining
The main advantage of trading using opposite Ivanhoe Energy and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, McEwen Mining 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 McEwen Mining will offset losses from the drop in McEwen Mining's long position.| Ivanhoe Energy vs. Montage Gold Corp | Ivanhoe Energy vs. Allied Gold | Ivanhoe Energy vs. Taseko Mines | Ivanhoe Energy vs. Skeena Resources |
| McEwen Mining vs. Solaris Resources | McEwen Mining vs. AbraSilver Resource Corp | McEwen Mining vs. Collective Mining | McEwen Mining vs. Mineros SA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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