Correlation Between Capella Minerals and Integra Resources
Can any of the company-specific risk be diversified away by investing in both Capella Minerals and Integra 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 Capella Minerals and Integra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capella Minerals Limited and Integra Resources Corp, you can compare the effects of market volatilities on Capella Minerals and Integra 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 Capella Minerals with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capella Minerals and Integra Resources.
Diversification Opportunities for Capella Minerals and Integra Resources
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capella and Integra is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Capella Minerals Limited and Integra Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Resources Corp and Capella Minerals 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 Capella Minerals Limited are associated (or correlated) with Integra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Resources Corp has no effect on the direction of Capella Minerals i.e., Capella Minerals and Integra Resources go up and down completely randomly.
Pair Corralation between Capella Minerals and Integra Resources
Assuming the 90 days horizon Capella Minerals Limited is expected to generate 0.8 times more return on investment than Integra Resources. However, Capella Minerals Limited is 1.25 times less risky than Integra Resources. It trades about -0.2 of its potential returns per unit of risk. Integra Resources Corp is currently generating about -0.24 per unit of risk. If you would invest 0.78 in Capella Minerals Limited on September 2, 2024 and sell it today you would lose (0.09) from holding Capella Minerals Limited or give up 11.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Capella Minerals Limited vs. Integra Resources Corp
Performance |
| Timeline |
| Capella Minerals |
| Integra Resources Corp |
Capella Minerals and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capella Minerals and Integra Resources
The main advantage of trading using opposite Capella Minerals and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capella Minerals position performs unexpectedly, Integra 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 Integra Resources will offset losses from the drop in Integra Resources' long position.| Capella Minerals vs. Defiance Silver Corp | Capella Minerals vs. HUMANA INC | Capella Minerals vs. SCOR PK | Capella Minerals vs. Aquagold International |
| Integra Resources vs. Silver Tiger Metals | Integra Resources vs. Defiance Silver Corp | Integra Resources vs. Summa Silver Corp | Integra Resources vs. AbraSilver Resource Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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