Correlation Between Infinico Metals and International Metals
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and International Metals 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 International Metals 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 International Metals Mining, you can compare the effects of market volatilities on Infinico Metals and International Metals 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 International Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and International Metals.
Diversification Opportunities for Infinico Metals and International Metals
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Infinico and International is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and International Metals Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Metals 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 International Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Metals has no effect on the direction of Infinico Metals i.e., Infinico Metals and International Metals go up and down completely randomly.
Pair Corralation between Infinico Metals and International Metals
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the International Metals. In addition to that, Infinico Metals is 1.07 times more volatile than International Metals Mining. It trades about -0.01 of its total potential returns per unit of risk. International Metals Mining is currently generating about -0.01 per unit of volatility. If you would invest 32.00 in International Metals Mining on October 10, 2024 and sell it today you would lose (24.50) from holding International Metals Mining or give up 76.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. International Metals Mining
Performance |
| Timeline |
| Infinico Metals Corp |
| International Metals |
Infinico Metals and International Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and International Metals
The main advantage of trading using opposite Infinico Metals and International Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, International Metals 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 International Metals will offset losses from the drop in International Metals' long position.| Infinico Metals vs. Globex Mining Enterprises | Infinico Metals vs. NeXGold Mining Corp | Infinico Metals vs. South Pacific Metals | Infinico Metals vs. Metalero Mining Corp |
| International Metals vs. First Majestic Silver | International Metals vs. Ivanhoe Energy | International Metals vs. Flinders Resources Limited | International Metals vs. Orezone Gold 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |