Correlation Between Ivanhoe Mines and Lode Gold

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

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

Diversification Opportunities for Ivanhoe Mines and Lode Gold

0.0

Correlation Coefficient

Ivanhoe Mines  Lode Gold

Pay attention - limited upside

The 3 months correlation between Ivanhoe and Lode is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Lode Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lode Gold Resources and Ivanhoe Mines 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 Mines are associated (or correlated) with Lode Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lode Gold Resources has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Lode Gold go up and down completely randomly.

Pair Corralation between Ivanhoe Mines and Lode Gold

If you would invest (100.00) in Lode Gold Resources on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Lode Gold Resources or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ivanhoe Mines  vs.  Lode Gold Resources

Ivanhoe Mines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ivanhoe Mines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Lode Gold Resources

Risk-Adjusted Performance

OK

Over the last 90 days Lode Gold Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Lode Gold is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ivanhoe Mines and Lode Gold

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

The idea behind Ivanhoe Mines and Lode Gold Resources 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.