Correlation Between Ivanhoe Mines and Doubleview Gold

Can any of the company-specific risk be diversified away by investing in both Ivanhoe Mines and Doubleview 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 Doubleview 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 Doubleview Gold Corp, you can compare the effects of market volatilities on Ivanhoe Mines and Doubleview 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 Doubleview Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Mines and Doubleview Gold.

Diversification Opportunities for Ivanhoe Mines and Doubleview Gold

-0.73

Correlation Coefficient

Ivanhoe Mines  Doubleview Gold

Pay attention - limited upside

The 3 months correlation between Ivanhoe and Doubleview is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Mines and Doubleview Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleview Gold Corp 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 Doubleview Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleview Gold Corp has no effect on the direction of Ivanhoe Mines i.e., Ivanhoe Mines and Doubleview Gold go up and down completely randomly.

Pair Corralation between Ivanhoe Mines and Doubleview Gold

Assuming the 90 days horizon Ivanhoe Mines is expected to under-perform the Doubleview Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Mines is 1.53 times less risky than Doubleview Gold. The otc stock trades about -0.09 of its potential returns per unit of risk. The Doubleview Gold Corp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Doubleview Gold Corp on December 28, 2024 and sell it today you would earn a total of  32.00  from holding Doubleview Gold Corp or generate 133.33% return on investment over 90 days.

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

Ivanhoe Mines  vs.  Doubleview Gold Corp

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. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Doubleview Gold Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleview Gold Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Doubleview Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ivanhoe Mines and Doubleview Gold

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

The idea behind Ivanhoe Mines and Doubleview 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.