Correlation Between Dolly Varden and Integra Resources
Can any of the company-specific risk be diversified away by investing in both Dolly Varden 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 Dolly Varden and Integra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dolly Varden Silver and Integra Resources Corp, you can compare the effects of market volatilities on Dolly Varden 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 Dolly Varden with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolly Varden and Integra Resources.
Diversification Opportunities for Dolly Varden and Integra Resources
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dolly and Integra is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dolly Varden Silver 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 Dolly Varden 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 Dolly Varden Silver 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 Dolly Varden i.e., Dolly Varden and Integra Resources go up and down completely randomly.
Pair Corralation between Dolly Varden and Integra Resources
Given the investment horizon of 90 days Dolly Varden Silver is expected to generate 1.1 times more return on investment than Integra Resources. However, Dolly Varden is 1.1 times more volatile than Integra Resources Corp. It trades about 0.04 of its potential returns per unit of risk. Integra Resources Corp is currently generating about 0.04 per unit of risk. If you would invest 99.00 in Dolly Varden Silver on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Dolly Varden Silver or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dolly Varden Silver vs. Integra Resources Corp
Performance |
| Timeline |
| Dolly Varden Silver |
| Integra Resources Corp |
Dolly Varden and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolly Varden and Integra Resources
The main advantage of trading using opposite Dolly Varden and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolly Varden 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.| Dolly Varden vs. Defiance Silver Corp | Dolly Varden vs. Metallic Minerals Corp | Dolly Varden vs. Kootenay Silver | Dolly Varden vs. Minaurum Gold |
| Integra Resources vs. Liberty Gold Corp | Integra Resources vs. Rio2 | Integra Resources vs. Revival Gold | Integra Resources vs. O3 Mining |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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