Correlation Between Infinico Metals and Chemtrade Logistics
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Chemtrade Logistics 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 Chemtrade Logistics 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 Chemtrade Logistics Income, you can compare the effects of market volatilities on Infinico Metals and Chemtrade Logistics 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 Chemtrade Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Chemtrade Logistics.
Diversification Opportunities for Infinico Metals and Chemtrade Logistics
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Chemtrade is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Chemtrade Logistics Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemtrade Logistics 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 Chemtrade Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemtrade Logistics has no effect on the direction of Infinico Metals i.e., Infinico Metals and Chemtrade Logistics go up and down completely randomly.
Pair Corralation between Infinico Metals and Chemtrade Logistics
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 6.82 times more return on investment than Chemtrade Logistics. However, Infinico Metals is 6.82 times more volatile than Chemtrade Logistics Income. It trades about 0.03 of its potential returns per unit of risk. Chemtrade Logistics Income is currently generating about 0.05 per unit of risk. If you would invest 4.00 in Infinico Metals Corp on August 24, 2024 and sell it today you would lose (2.00) from holding Infinico Metals Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.01% |
| Values | Daily Returns |
Infinico Metals Corp vs. Chemtrade Logistics Income
Performance |
| Timeline |
| Infinico Metals Corp |
| Chemtrade Logistics |
Infinico Metals and Chemtrade Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Chemtrade Logistics
The main advantage of trading using opposite Infinico Metals and Chemtrade Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Chemtrade Logistics 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 Chemtrade Logistics will offset losses from the drop in Chemtrade Logistics' long position.| Infinico Metals vs. Rainy Mountain Royalty | Infinico Metals vs. Plato Gold Corp | Infinico Metals vs. Rochester Resources | Infinico Metals vs. Forstrong Global Income |
| Chemtrade Logistics vs. Rainy Mountain Royalty | Chemtrade Logistics vs. Plato Gold Corp | Chemtrade Logistics vs. Rochester Resources | Chemtrade Logistics vs. Forstrong Global Income |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |