Correlation Between Honey Badger and Integra Resources
Can any of the company-specific risk be diversified away by investing in both Honey Badger 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 Honey Badger and Integra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Honey Badger Silver and Integra Resources Corp, you can compare the effects of market volatilities on Honey Badger 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 Honey Badger with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Honey Badger and Integra Resources.
Diversification Opportunities for Honey Badger and Integra Resources
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Honey and Integra is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Honey Badger 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 Honey Badger 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 Honey Badger 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 Honey Badger i.e., Honey Badger and Integra Resources go up and down completely randomly.
Pair Corralation between Honey Badger and Integra Resources
Assuming the 90 days horizon Honey Badger Silver is expected to generate 2.12 times more return on investment than Integra Resources. However, Honey Badger is 2.12 times more volatile than Integra Resources Corp. It trades about 0.05 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 7.46 in Honey Badger Silver on September 3, 2024 and sell it today you would earn a total of 0.89 from holding Honey Badger Silver or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Honey Badger Silver vs. Integra Resources Corp
Performance |
| Timeline |
| Honey Badger Silver |
| Integra Resources Corp |
Honey Badger and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Honey Badger and Integra Resources
The main advantage of trading using opposite Honey Badger and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Honey Badger 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.| Honey Badger vs. Cartier Iron Corp | Honey Badger vs. Arctic Star Exploration | Honey Badger vs. Capella Minerals Limited | Honey Badger vs. Denarius Silver Corp |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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