Correlation Between Ivanhoe Energy and NovaGold Resources
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and NovaGold Resources 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 NovaGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and NovaGold Resources, you can compare the effects of market volatilities on Ivanhoe Energy and NovaGold Resources 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 NovaGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and NovaGold Resources.
Diversification Opportunities for Ivanhoe Energy and NovaGold Resources
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ivanhoe and NovaGold is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and NovaGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NovaGold Resources 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 NovaGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NovaGold Resources has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and NovaGold Resources go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and NovaGold Resources
Assuming the 90 days horizon Ivanhoe Energy is expected to generate 1.13 times less return on investment than NovaGold Resources. In addition to that, Ivanhoe Energy is 1.1 times more volatile than NovaGold Resources. It trades about 0.14 of its total potential returns per unit of risk. NovaGold Resources is currently generating about 0.17 per unit of volatility. If you would invest 820.00 in NovaGold Resources on August 20, 2025 and sell it today you would earn a total of 377.00 from holding NovaGold Resources or generate 45.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Energy vs. NovaGold Resources
Performance |
| Timeline |
| Ivanhoe Energy |
| NovaGold Resources |
Ivanhoe Energy and NovaGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Energy and NovaGold Resources
The main advantage of trading using opposite Ivanhoe Energy and NovaGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, NovaGold Resources 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 NovaGold Resources will offset losses from the drop in NovaGold Resources' long position.| Ivanhoe Energy vs. Montage Gold Corp | Ivanhoe Energy vs. Allied Gold | Ivanhoe Energy vs. Taseko Mines | Ivanhoe Energy vs. Skeena Resources |
| NovaGold Resources vs. K92 Mining | NovaGold Resources vs. Orla Mining | NovaGold Resources vs. Westgold Resources Limited | NovaGold Resources vs. Torex Gold 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |