Correlation Between Ivanhoe Electric and Eagle Pointome

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Can any of the company-specific risk be diversified away by investing in both Ivanhoe Electric and Eagle Pointome 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 Electric and Eagle Pointome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Electric and Eagle Pointome, you can compare the effects of market volatilities on Ivanhoe Electric and Eagle Pointome 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 Electric with a short position of Eagle Pointome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Electric and Eagle Pointome.

Diversification Opportunities for Ivanhoe Electric and Eagle Pointome

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Ivanhoe and Eagle is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Electric and Eagle Pointome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pointome and Ivanhoe Electric 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 Electric are associated (or correlated) with Eagle Pointome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pointome has no effect on the direction of Ivanhoe Electric i.e., Ivanhoe Electric and Eagle Pointome go up and down completely randomly.

Pair Corralation between Ivanhoe Electric and Eagle Pointome

Allowing for the 90-day total investment horizon Ivanhoe Electric is expected to generate 4.67 times more return on investment than Eagle Pointome. However, Ivanhoe Electric is 4.67 times more volatile than Eagle Pointome. It trades about 0.2 of its potential returns per unit of risk. Eagle Pointome is currently generating about -0.21 per unit of risk. If you would invest  895.00  in Ivanhoe Electric on September 13, 2025 and sell it today you would earn a total of  696.00  from holding Ivanhoe Electric or generate 77.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ivanhoe Electric  vs.  Eagle Pointome

 Performance 
       Timeline  
Ivanhoe Electric 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ivanhoe Electric are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Ivanhoe Electric exhibited solid returns over the last few months and may actually be approaching a breakup point.
Eagle Pointome 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Eagle Pointome has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ivanhoe Electric and Eagle Pointome Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ivanhoe Electric and Eagle Pointome

The main advantage of trading using opposite Ivanhoe Electric and Eagle Pointome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Electric position performs unexpectedly, Eagle Pointome 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 Eagle Pointome will offset losses from the drop in Eagle Pointome's long position.
The idea behind Ivanhoe Electric and Eagle Pointome 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.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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