Correlation Between GoMgA Resources and Infinite Ore
Can any of the company-specific risk be diversified away by investing in both GoMgA Resources and Infinite Ore 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 GoMgA Resources and Infinite Ore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoMgA Resources and Infinite Ore Corp, you can compare the effects of market volatilities on GoMgA Resources and Infinite Ore 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 GoMgA Resources with a short position of Infinite Ore. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoMgA Resources and Infinite Ore.
Diversification Opportunities for GoMgA Resources and Infinite Ore
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GoMgA and Infinite is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding GoMgA Resources and Infinite Ore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinite Ore Corp and GoMgA Resources 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 GoMgA Resources are associated (or correlated) with Infinite Ore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinite Ore Corp has no effect on the direction of GoMgA Resources i.e., GoMgA Resources and Infinite Ore go up and down completely randomly.
Pair Corralation between GoMgA Resources and Infinite Ore
Assuming the 90 days horizon GoMgA Resources is expected to under-perform the Infinite Ore. In addition to that, GoMgA Resources is 1.7 times more volatile than Infinite Ore Corp. It trades about -0.01 of its total potential returns per unit of risk. Infinite Ore Corp is currently generating about 0.43 per unit of volatility. If you would invest 1.20 in Infinite Ore Corp on October 26, 2024 and sell it today you would earn a total of 0.30 from holding Infinite Ore Corp or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoMgA Resources vs. Infinite Ore Corp
Performance |
| Timeline |
| GoMgA Resources |
| Infinite Ore Corp |
GoMgA Resources and Infinite Ore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoMgA Resources and Infinite Ore
The main advantage of trading using opposite GoMgA Resources and Infinite Ore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoMgA Resources position performs unexpectedly, Infinite Ore 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 Infinite Ore will offset losses from the drop in Infinite Ore's long position.| GoMgA Resources vs. Arctic Star Exploration | GoMgA Resources vs. American Clean Resources | GoMgA Resources vs. Arras Minerals Corp | GoMgA Resources vs. American Creek Resources |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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