Correlation Between Infinico Metals and Entree Resources
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Entree 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 Entree 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 Entree Resources, you can compare the effects of market volatilities on Infinico Metals and Entree 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 Entree Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Entree Resources.
Diversification Opportunities for Infinico Metals and Entree Resources
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Infinico and Entree is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Entree Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entree 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 Entree Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entree Resources has no effect on the direction of Infinico Metals i.e., Infinico Metals and Entree Resources go up and down completely randomly.
Pair Corralation between Infinico Metals and Entree Resources
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 4.66 times more return on investment than Entree Resources. However, Infinico Metals is 4.66 times more volatile than Entree Resources. It trades about 0.02 of its potential returns per unit of risk. Entree Resources is currently generating about 0.06 per unit of risk. If you would invest 7.00 in Infinico Metals Corp on October 25, 2024 and sell it today you would lose (5.50) from holding Infinico Metals Corp or give up 78.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.41% |
| Values | Daily Returns |
Infinico Metals Corp vs. Entree Resources
Performance |
| Timeline |
| Infinico Metals Corp |
| Entree Resources |
Infinico Metals and Entree Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Entree Resources
The main advantage of trading using opposite Infinico Metals and Entree Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Entree 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 Entree Resources will offset losses from the drop in Entree Resources' long position.| Infinico Metals vs. Broadcom | Infinico Metals vs. Cogeco Communications | Infinico Metals vs. Maple Leaf Foods | Infinico Metals vs. Costco Wholesale Corp |
| Entree Resources vs. Solitario Exploration Royalty | Entree Resources vs. Globex Mining Enterprises | Entree Resources vs. Northcliff Resources | Entree Resources vs. St Augustine Gold |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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