Correlation Between Ivanhoe Energy and Endurance Gold

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

By analyzing existing cross correlation between Ivanhoe Energy and Endurance Gold Corp, you can compare the effects of market volatilities on Ivanhoe Energy and Endurance Gold 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 Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and Endurance Gold.

Diversification Opportunities for Ivanhoe Energy and Endurance Gold

-0.19

Correlation Coefficient

Ivanhoe Energy  Endurance Gold

Good diversification

The 3 months correlation between Ivanhoe and Endurance is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and Endurance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold Corp 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 Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold Corp has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and Endurance Gold go up and down completely randomly.

Pair Corralation between Ivanhoe Energy and Endurance Gold

Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the Endurance Gold. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 1.02 times less risky than Endurance Gold. The stock trades about -0.06 of its potential returns per unit of risk. The Endurance Gold Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  13.00  in Endurance Gold Corp on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Endurance Gold Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ivanhoe Energy  vs.  Endurance Gold Corp

Ivanhoe Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ivanhoe Energy 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 basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Endurance Gold Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Endurance Gold Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Endurance Gold is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ivanhoe Energy and Endurance Gold

The main advantage of trading using opposite Ivanhoe Energy and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, Endurance Gold 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.

The idea behind Ivanhoe Energy and Endurance Gold Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.