Correlation Between Highland Surprise and Ivanhoe Mines

Can any of the company-specific risk be diversified away by investing in both Highland Surprise 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 Highland Surprise and Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Highland Surprise Consolidated and Ivanhoe Mines, you can compare the effects of market volatilities on Highland Surprise 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 Highland Surprise with a short position of Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Surprise and Ivanhoe Mines.

Diversification Opportunities for Highland Surprise and Ivanhoe Mines

0.0

Correlation Coefficient

Highland Surprise  Ivanhoe Mines

Pay attention - limited upside

The 3 months correlation between Highland and Ivanhoe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Highland Surprise Consolidated and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines and Highland Surprise 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 Highland Surprise Consolidated 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 Highland Surprise i.e., Highland Surprise and Ivanhoe Mines go up and down completely randomly.

Pair Corralation between Highland Surprise and Ivanhoe Mines

If you would invest  0.03  in Highland Surprise Consolidated on October 22, 2024 and sell it today you would earn a total of  0.00  from holding Highland Surprise Consolidated or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	50.0%
Values	Daily Returns

Highland Surprise Consolidated  vs.  Ivanhoe Mines

Highland Surprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Highland Surprise Consolidated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Highland Surprise is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Ivanhoe Mines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ivanhoe Mines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Highland Surprise and Ivanhoe Mines

The main advantage of trading using opposite Highland Surprise and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Surprise 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.

The idea behind Highland Surprise Consolidated and Ivanhoe Mines 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.