Correlation Between Defiance Silver and Integra Resources
Can any of the company-specific risk be diversified away by investing in both Defiance Silver 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 Defiance Silver and Integra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Defiance Silver Corp and Integra Resources Corp, you can compare the effects of market volatilities on Defiance Silver 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 Defiance Silver with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Defiance Silver and Integra Resources.
Diversification Opportunities for Defiance Silver and Integra Resources
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Defiance and Integra is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Defiance Silver Corp 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 Defiance Silver 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 Defiance Silver Corp 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 Defiance Silver i.e., Defiance Silver and Integra Resources go up and down completely randomly.
Pair Corralation between Defiance Silver and Integra Resources
Assuming the 90 days horizon Defiance Silver Corp is expected to generate 3.8 times more return on investment than Integra Resources. However, Defiance Silver is 3.8 times more volatile than Integra Resources Corp. It trades about 0.15 of its potential returns per unit of risk. Integra Resources Corp is currently generating about -0.3 per unit of risk. If you would invest 13.00 in Defiance Silver Corp on October 22, 2024 and sell it today you would earn a total of 2.00 from holding Defiance Silver Corp or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Defiance Silver Corp vs. Integra Resources Corp
Performance |
| Timeline |
| Defiance Silver Corp |
| Integra Resources Corp |
Defiance Silver and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Defiance Silver and Integra Resources
The main advantage of trading using opposite Defiance Silver and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Defiance Silver 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.| Defiance Silver vs. Aftermath Silver | Defiance Silver vs. AbraSilver Resource Corp | Defiance Silver vs. Southern Silver Exploration | Defiance Silver vs. Blackrock Silver Corp |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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