Correlation Between Ivanhoe Mines and Aftermath Silver

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Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Aftermath Silver 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 Aftermath Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Mines and Aftermath Silver, you can compare the effects of market volatilities on Ivanhoe Mines and Aftermath Silver 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 Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Aftermath Silver.

Diversification Opportunities for Ivanhoe Mines and Aftermath Silver

IvanhoeAftermathDiversified AwayIvanhoeAftermathDiversified Away100%
-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Ivanhoe and Aftermath is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver 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 Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Aftermath Silver go up and down completely randomly.

Pair Corralation between Ivanhoe Mines and Aftermath Silver

Assuming the 90 days horizon Ivanhoe Mines is expected to under-perform the Aftermath Silver. But the otc stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Mines is 1.55 times less risky than Aftermath Silver. The otc stock trades about -0.12 of its potential returns per unit of risk. The Aftermath Silver is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  33.00  in Aftermath Silver on November 24, 2024 and sell it today you would earn a total of  6.00  from holding Aftermath Silver or generate 18.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ivanhoe Mines  vs.  Aftermath Silver

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15IVPAF AAGFF
       Timeline  
Ivanhoe Mines 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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 March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb101112131415
Aftermath Silver 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aftermath Silver are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Aftermath Silver reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.280.30.320.340.360.380.40.42

Ivanhoe Mines and Aftermath Silver Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.65-3.48-2.32-1.150.01.092.183.264.35 0.0150.0200.0250.0300.0350.0400.0450.050
JavaScript chart by amCharts 3.21.15IVPAF AAGFF
       Returns  

Pair Trading with Ivanhoe Mines and Aftermath Silver

The main advantage of trading using opposite Ivanhoe Mines and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Mines position performs unexpectedly, Aftermath Silver 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 Aftermath Silver will offset losses from the drop in Aftermath Silver's long position.
The idea behind Ivanhoe Mines and Aftermath Silver 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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