Correlation Between AM Resources and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both AM Resources and Ivanhoe Mines 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 AM Resources and Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM Resources Corp and Ivanhoe Mines, you can compare the effects of market volatilities on AM Resources and Ivanhoe Mines 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 AM Resources with a short position of Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM Resources and Ivanhoe Mines.
Diversification Opportunities for AM Resources and Ivanhoe Mines
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMR and Ivanhoe is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AM Resources Corp and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and AM Resources 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 AM Resources Corp are associated (or correlated) with Ivanhoe Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Mines has no effect on the direction of AM Resources i.e., AM Resources and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between AM Resources and Ivanhoe Mines
Assuming the 90 days horizon AM Resources Corp is expected to generate 3.51 times more return on investment than Ivanhoe Mines. However, AM Resources is 3.51 times more volatile than Ivanhoe Mines. It trades about 0.04 of its potential returns per unit of risk. Ivanhoe Mines is currently generating about 0.06 per unit of risk. If you would invest 5.00 in AM Resources Corp on February 13, 2024 and sell it today you would lose (1.50) from holding AM Resources Corp or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AM Resources Corp vs. Ivanhoe Mines
Performance |
| Timeline |
| AM Resources Corp |
| Ivanhoe Mines |
AM Resources and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM Resources and Ivanhoe Mines
The main advantage of trading using opposite AM Resources and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM Resources position performs unexpectedly, Ivanhoe Mines 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 Ivanhoe Mines will offset losses from the drop in Ivanhoe Mines' long position.| AM Resources vs. TGS Esports | AM Resources vs. China Education Resources | AM Resources vs. Perseus Mining | AM Resources vs. Mako Mining Corp |
| Ivanhoe Mines vs. Lundin Mining | Ivanhoe Mines vs. First Quantum Minerals | Ivanhoe Mines vs. HudBay Minerals | Ivanhoe Mines vs. Eldorado Gold Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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