Correlation Between Infinico Metals and Amerigo Resources
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Amerigo 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 Infinico Metals and Amerigo Resources 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 Amerigo Resources, you can compare the effects of market volatilities on Infinico Metals and Amerigo 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 Infinico Metals with a short position of Amerigo Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Amerigo Resources.
Diversification Opportunities for Infinico Metals and Amerigo Resources
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Amerigo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Amerigo Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amerigo Resources 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 Amerigo Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amerigo Resources has no effect on the direction of Infinico Metals i.e., Infinico Metals and Amerigo Resources go up and down completely randomly.
Pair Corralation between Infinico Metals and Amerigo Resources
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 4.15 times more return on investment than Amerigo Resources. However, Infinico Metals is 4.15 times more volatile than Amerigo Resources. It trades about 0.03 of its potential returns per unit of risk. Amerigo Resources is currently generating about 0.04 per unit of risk. If you would invest 4.50 in Infinico Metals Corp on August 31, 2024 and sell it today you would lose (2.00) from holding Infinico Metals Corp or give up 44.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.35% |
| Values | Daily Returns |
Infinico Metals Corp vs. Amerigo Resources
Performance |
| Timeline |
| Infinico Metals Corp |
| Amerigo Resources |
Infinico Metals and Amerigo Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Amerigo Resources
The main advantage of trading using opposite Infinico Metals and Amerigo Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Amerigo 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 Amerigo Resources will offset losses from the drop in Amerigo Resources' long position.| Infinico Metals vs. Solar Alliance Energy | Infinico Metals vs. Global X Active | Infinico Metals vs. Financial 15 Split | Infinico Metals vs. Rubicon Organics |
| Amerigo Resources vs. Taseko Mines | Amerigo Resources vs. Western Copper and | Amerigo Resources vs. Capstone Mining Corp | Amerigo Resources vs. Imperial Metals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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