Correlation Between Infinico Metals and Goldbank Mining
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Goldbank Mining 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 Goldbank Mining 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 Goldbank Mining Corp, you can compare the effects of market volatilities on Infinico Metals and Goldbank Mining 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 Goldbank Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Goldbank Mining.
Diversification Opportunities for Infinico Metals and Goldbank Mining
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Goldbank is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Goldbank Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldbank Mining 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 Goldbank Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldbank Mining Corp has no effect on the direction of Infinico Metals i.e., Infinico Metals and Goldbank Mining go up and down completely randomly.
Pair Corralation between Infinico Metals and Goldbank Mining
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Goldbank Mining. But the stock apears to be less risky and, when comparing its historical volatility, Infinico Metals Corp is 2.03 times less risky than Goldbank Mining. The stock trades about -0.18 of its potential returns per unit of risk. The Goldbank Mining Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Goldbank Mining Corp on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Goldbank Mining Corp or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Infinico Metals Corp vs. Goldbank Mining Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Goldbank Mining Corp |
Infinico Metals and Goldbank Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Goldbank Mining
The main advantage of trading using opposite Infinico Metals and Goldbank Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Goldbank Mining 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 Goldbank Mining will offset losses from the drop in Goldbank Mining's long position.| Infinico Metals vs. Solar Alliance Energy | Infinico Metals vs. Global X Active | Infinico Metals vs. Financial 15 Split | Infinico Metals vs. Rubicon Organics |
| Goldbank Mining vs. Solar Alliance Energy | Goldbank Mining vs. Global X Active | Goldbank Mining vs. Financial 15 Split | Goldbank Mining vs. Rubicon Organics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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