Correlation Between Ivanhoe Electric and Freeport McMoran
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Electric and Freeport McMoran 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 Freeport McMoran into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Electric and Freeport McMoran Copper Gold, you can compare the effects of market volatilities on Ivanhoe Electric and Freeport McMoran 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 Freeport McMoran. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Electric and Freeport McMoran.
Diversification Opportunities for Ivanhoe Electric and Freeport McMoran
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ivanhoe and Freeport is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Electric and Freeport McMoran Copper Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeport McMoran Copper 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 Freeport McMoran. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeport McMoran Copper has no effect on the direction of Ivanhoe Electric i.e., Ivanhoe Electric and Freeport McMoran go up and down completely randomly.
Pair Corralation between Ivanhoe Electric and Freeport McMoran
Allowing for the 90-day total investment horizon Ivanhoe Electric is expected to generate 1.07 times less return on investment than Freeport McMoran. In addition to that, Ivanhoe Electric is 1.85 times more volatile than Freeport McMoran Copper Gold. It trades about 0.05 of its total potential returns per unit of risk. Freeport McMoran Copper Gold is currently generating about 0.11 per unit of volatility. If you would invest 4,088 in Freeport McMoran Copper Gold on June 11, 2025 and sell it today you would earn a total of 578.00 from holding Freeport McMoran Copper Gold or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Electric vs. Freeport McMoran Copper Gold
Performance |
| Timeline |
| Ivanhoe Electric |
| Freeport McMoran Copper |
Ivanhoe Electric and Freeport McMoran Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Electric and Freeport McMoran
The main advantage of trading using opposite Ivanhoe Electric and Freeport McMoran positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Electric position performs unexpectedly, Freeport McMoran 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 Freeport McMoran will offset losses from the drop in Freeport McMoran's long position.| Ivanhoe Electric vs. Algoma Steel Group | Ivanhoe Electric vs. Synalloy | Ivanhoe Electric vs. Olympic Steel | Ivanhoe Electric vs. Algoma Steel Group |
| Freeport McMoran vs. AngloGold Ashanti plc | Freeport McMoran vs. Celanese | Freeport McMoran vs. Dakota Gold Corp | Freeport McMoran vs. Ivanhoe Electric |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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