Correlation Between Infinico Metals and First Quantum
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and First Quantum 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 First Quantum 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 First Quantum Minerals, you can compare the effects of market volatilities on Infinico Metals and First Quantum 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 First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and First Quantum.
Diversification Opportunities for Infinico Metals and First Quantum
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and First is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals 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 First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of Infinico Metals i.e., Infinico Metals and First Quantum go up and down completely randomly.
Pair Corralation between Infinico Metals and First Quantum
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the First Quantum. In addition to that, Infinico Metals is 3.3 times more volatile than First Quantum Minerals. It trades about -0.05 of its total potential returns per unit of risk. First Quantum Minerals is currently generating about 0.07 per unit of volatility. If you would invest 1,851 in First Quantum Minerals on August 25, 2024 and sell it today you would earn a total of 77.00 from holding First Quantum Minerals or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Infinico Metals Corp vs. First Quantum Minerals
Performance |
| Timeline |
| Infinico Metals Corp |
| First Quantum Minerals |
Infinico Metals and First Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and First Quantum
The main advantage of trading using opposite Infinico Metals and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp | Infinico Metals vs. Faraday Copper Corp |
| First Quantum vs. Lundin Mining | First Quantum vs. HudBay Minerals | First Quantum vs. Teck Resources Limited | First Quantum vs. Ivanhoe Mines |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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