Correlation Between Infinico Metals and Dore Copper
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Dore Copper 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 Dore Copper 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 Dore Copper Mining, you can compare the effects of market volatilities on Infinico Metals and Dore Copper 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 Dore Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Dore Copper.
Diversification Opportunities for Infinico Metals and Dore Copper
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Dore is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Dore Copper Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dore Copper Mining 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 Dore Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dore Copper Mining has no effect on the direction of Infinico Metals i.e., Infinico Metals and Dore Copper go up and down completely randomly.
Pair Corralation between Infinico Metals and Dore Copper
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Dore Copper. In addition to that, Infinico Metals is 2.07 times more volatile than Dore Copper Mining. It trades about -0.17 of its total potential returns per unit of risk. Dore Copper Mining is currently generating about -0.23 per unit of volatility. If you would invest 18.00 in Dore Copper Mining on August 29, 2024 and sell it today you would lose (4.00) from holding Dore Copper Mining or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Infinico Metals Corp vs. Dore Copper Mining
Performance |
| Timeline |
| Infinico Metals Corp |
| Dore Copper Mining |
Infinico Metals and Dore Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Dore Copper
The main advantage of trading using opposite Infinico Metals and Dore Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Dore Copper 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 Dore Copper will offset losses from the drop in Dore Copper's long position.The idea behind Infinico Metals Corp and Dore Copper Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |