Correlation Between Infinico Metals and Aftermath Silver
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Aftermath Silver 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 Infinico Metals and Aftermath Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinico Metals Corp and Aftermath Silver, you can compare the effects of market volatilities on Infinico Metals and Aftermath Silver 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 Infinico Metals with a short position of Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Aftermath Silver.
Diversification Opportunities for Infinico Metals and Aftermath Silver
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Aftermath is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver and Infinico Metals 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 Infinico Metals Corp are associated (or correlated) with Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of Infinico Metals i.e., Infinico Metals and Aftermath Silver go up and down completely randomly.
Pair Corralation between Infinico Metals and Aftermath Silver
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Aftermath Silver. In addition to that, Infinico Metals is 1.83 times more volatile than Aftermath Silver. It trades about -0.03 of its total potential returns per unit of risk. Aftermath Silver is currently generating about 0.05 per unit of volatility. If you would invest 40.00 in Aftermath Silver on August 25, 2024 and sell it today you would earn a total of 7.00 from holding Aftermath Silver or generate 17.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Infinico Metals Corp vs. Aftermath Silver
Performance |
| Timeline |
| Infinico Metals Corp |
| Aftermath Silver |
Infinico Metals and Aftermath Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Aftermath Silver
The main advantage of trading using opposite Infinico Metals and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Aftermath Silver 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 Aftermath Silver will offset losses from the drop in Aftermath Silver's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp | Infinico Metals vs. Faraday Copper Corp |
| Aftermath Silver vs. First Majestic Silver | Aftermath Silver vs. Ivanhoe Energy | Aftermath Silver vs. Orezone Gold Corp | Aftermath Silver vs. Faraday Copper Corp |
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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