Correlation Between Infinico Metals and Galane Gold
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Galane Gold 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 Galane Gold 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 Galane Gold, you can compare the effects of market volatilities on Infinico Metals and Galane Gold 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 Galane Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Galane Gold.
Diversification Opportunities for Infinico Metals and Galane Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Galane is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Galane Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galane Gold 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 Galane Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galane Gold has no effect on the direction of Infinico Metals i.e., Infinico Metals and Galane Gold go up and down completely randomly.
Pair Corralation between Infinico Metals and Galane Gold
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Galane Gold. In addition to that, Infinico Metals is 1.27 times more volatile than Galane Gold. It trades about -0.01 of its total potential returns per unit of risk. Galane Gold is currently generating about 0.07 per unit of volatility. If you would invest 17.00 in Galane Gold on August 27, 2024 and sell it today you would earn a total of 15.00 from holding Galane Gold or generate 88.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Infinico Metals Corp vs. Galane Gold
Performance |
| Timeline |
| Infinico Metals Corp |
| Galane Gold |
Infinico Metals and Galane Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Galane Gold
The main advantage of trading using opposite Infinico Metals and Galane Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Galane Gold 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 Galane Gold will offset losses from the drop in Galane Gold's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp |
| Galane Gold vs. Angkor Resources Corp | Galane Gold vs. Gitennes Exploration | Galane Gold vs. Lupaka Gold Corp | Galane Gold vs. Eros Resources 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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