Correlation Between Infinico Metals and Canfor
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Canfor 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 Canfor 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 Canfor, you can compare the effects of market volatilities on Infinico Metals and Canfor 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 Canfor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Canfor.
Diversification Opportunities for Infinico Metals and Canfor
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Canfor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Canfor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor 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 Canfor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor has no effect on the direction of Infinico Metals i.e., Infinico Metals and Canfor go up and down completely randomly.
Pair Corralation between Infinico Metals and Canfor
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Canfor. In addition to that, Infinico Metals is 4.43 times more volatile than Canfor. It trades about -0.17 of its total potential returns per unit of risk. Canfor is currently generating about 0.1 per unit of volatility. If you would invest 1,727 in Canfor on August 29, 2024 and sell it today you would earn a total of 78.00 from holding Canfor or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Infinico Metals Corp vs. Canfor
Performance |
| Timeline |
| Infinico Metals Corp |
| Canfor |
Infinico Metals and Canfor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Canfor
The main advantage of trading using opposite Infinico Metals and Canfor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Canfor 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 Canfor will offset losses from the drop in Canfor's long position.| Infinico Metals vs. Rubicon Organics | Infinico Metals vs. T2 Metals Corp | Infinico Metals vs. Maple Leaf Foods | Infinico Metals vs. Intact Financial Corp |
| Canfor vs. Quipt Home Medical | Canfor vs. Air Canada | Canfor vs. Northstar Clean Technologies | Canfor vs. WELL Health Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |