Correlation Between Infinico Metals and IAMGold
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and IAMGold 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 IAMGold 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 IAMGold, you can compare the effects of market volatilities on Infinico Metals and IAMGold 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 IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and IAMGold.
Diversification Opportunities for Infinico Metals and IAMGold
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and IAMGold is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold 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 IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Infinico Metals i.e., Infinico Metals and IAMGold go up and down completely randomly.
Pair Corralation between Infinico Metals and IAMGold
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the IAMGold. In addition to that, Infinico Metals is 2.81 times more volatile than IAMGold. It trades about -0.01 of its total potential returns per unit of risk. IAMGold is currently generating about 0.12 per unit of volatility. If you would invest 318.00 in IAMGold on September 2, 2024 and sell it today you would earn a total of 454.00 from holding IAMGold or generate 142.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. IAMGold
Performance |
| Timeline |
| Infinico Metals Corp |
| IAMGold |
Infinico Metals and IAMGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and IAMGold
The main advantage of trading using opposite Infinico Metals and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp |
| IAMGold vs. Eldorado Gold Corp | IAMGold vs. Kinross Gold Corp | IAMGold vs. Alamos Gold | IAMGold vs. New 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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