Correlation Between Ivanhoe Mines and Churchill Resources

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

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

Diversification Opportunities for Ivanhoe Mines and Churchill Resources

0.0

Correlation Coefficient

Ivanhoe Mines  Churchill Resources

Pay attention - limited upside

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

Pair Corralation between Ivanhoe Mines and Churchill Resources

If you would invest  1,239  in Ivanhoe Mines on February 5, 2024 and sell it today you would earn a total of  153.00  from holding Ivanhoe Mines or generate 12.35% return on investment over 90 days.

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

Ivanhoe Mines  vs.  Churchill Resources

Ivanhoe Mines

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ivanhoe Mines are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ivanhoe Mines reported solid returns over the last few months and may actually be approaching a breakup point.

Churchill Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Churchill Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Churchill Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Ivanhoe Mines and Churchill Resources

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

The idea behind Ivanhoe Mines and Churchill 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.