Correlation Between I 80 and Minera Alamos
Can any of the company-specific risk be diversified away by investing in both I 80 and Minera Alamos 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 I 80 and Minera Alamos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I 80 Gold Corp and Minera Alamos, you can compare the effects of market volatilities on I 80 and Minera Alamos 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 I 80 with a short position of Minera Alamos. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Minera Alamos.
Diversification Opportunities for I 80 and Minera Alamos
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IAUX and Minera is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Minera Alamos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minera Alamos and I 80 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 I 80 Gold Corp are associated (or correlated) with Minera Alamos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minera Alamos has no effect on the direction of I 80 i.e., I 80 and Minera Alamos go up and down completely randomly.
Pair Corralation between I 80 and Minera Alamos
Given the investment horizon of 90 days I 80 Gold Corp is expected to generate 3.46 times more return on investment than Minera Alamos. However, I 80 is 3.46 times more volatile than Minera Alamos. It trades about -0.03 of its potential returns per unit of risk. Minera Alamos is currently generating about -0.27 per unit of risk. If you would invest 113.00 in I 80 Gold Corp on August 30, 2024 and sell it today you would lose (41.00) from holding I 80 Gold Corp or give up 36.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
I 80 Gold Corp vs. Minera Alamos
Performance |
| Timeline |
| I 80 Gold |
| Minera Alamos |
I 80 and Minera Alamos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Minera Alamos
The main advantage of trading using opposite I 80 and Minera Alamos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Minera Alamos 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 Minera Alamos will offset losses from the drop in Minera Alamos' long position.| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
| Minera Alamos vs. Silver Hammer Mining | Minera Alamos vs. Reyna Silver Corp | Minera Alamos vs. Guanajuato Silver | Minera Alamos vs. Silver One Resources |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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