Correlation Between Gatos Silver and Integra Resources
Can any of the company-specific risk be diversified away by investing in both Gatos 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 Gatos 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 Gatos Silver and Integra Resources Corp, you can compare the effects of market volatilities on Gatos 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 Gatos Silver with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and Integra Resources.
Diversification Opportunities for Gatos Silver and Integra Resources
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gatos and Integra is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gatos 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 Gatos 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 Gatos 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 Gatos Silver i.e., Gatos Silver and Integra Resources go up and down completely randomly.
Pair Corralation between Gatos Silver and Integra Resources
Given the investment horizon of 90 days Gatos Silver is expected to generate 1.12 times more return on investment than Integra Resources. However, Gatos Silver is 1.12 times more volatile than Integra Resources Corp. It trades about 0.07 of its potential returns per unit of risk. Integra Resources Corp is currently generating about 0.02 per unit of risk. If you would invest 1,145 in Gatos Silver on September 3, 2024 and sell it today you would earn a total of 350.00 from holding Gatos Silver or generate 30.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gatos Silver vs. Integra Resources Corp
Performance |
| Timeline |
| Gatos Silver |
| Integra Resources Corp |
Gatos Silver and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatos Silver and Integra Resources
The main advantage of trading using opposite Gatos Silver and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos 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.| Gatos Silver vs. Endeavour Silver Corp | Gatos Silver vs. Metalla Royalty Streaming | Gatos Silver vs. New Pacific Metals | Gatos Silver vs. Hecla Mining |
| Integra Resources vs. Triple Flag Precious | Integra Resources vs. Endeavour Silver Corp | Integra Resources vs. SilverCrest Metals | Integra Resources vs. Gatos Silver |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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