Correlation Between Infinico Metals and Faraday Copper
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Faraday 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 Faraday 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 Faraday Copper Corp, you can compare the effects of market volatilities on Infinico Metals and Faraday 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 Faraday Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Faraday Copper.
Diversification Opportunities for Infinico Metals and Faraday Copper
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Faraday is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Faraday Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faraday Copper Corp 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 Faraday Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faraday Copper Corp has no effect on the direction of Infinico Metals i.e., Infinico Metals and Faraday Copper go up and down completely randomly.
Pair Corralation between Infinico Metals and Faraday Copper
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Faraday Copper. In addition to that, Infinico Metals is 2.86 times more volatile than Faraday Copper Corp. It trades about -0.02 of its total potential returns per unit of risk. Faraday Copper Corp is currently generating about 0.08 per unit of volatility. If you would invest 54.00 in Faraday Copper Corp on August 24, 2024 and sell it today you would earn a total of 37.00 from holding Faraday Copper Corp or generate 68.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. Faraday Copper Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Faraday Copper Corp |
Infinico Metals and Faraday Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Faraday Copper
The main advantage of trading using opposite Infinico Metals and Faraday Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Faraday 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 Faraday Copper will offset losses from the drop in Faraday Copper's long position.| Infinico Metals vs. Fairfax Financial Holdings | Infinico Metals vs. US Financial 15 | Infinico Metals vs. Aurora Solar Technologies | Infinico Metals vs. Solar Alliance Energy |
| Faraday Copper vs. Arizona Sonoran Copper | Faraday Copper vs. Filo Mining Corp | Faraday Copper vs. Marimaca Copper Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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