Correlation Between Infinico Metals and Kesselrun Resources
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Kesselrun Resources 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 Kesselrun Resources 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 Kesselrun Resources, you can compare the effects of market volatilities on Infinico Metals and Kesselrun Resources 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 Kesselrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Kesselrun Resources.
Diversification Opportunities for Infinico Metals and Kesselrun Resources
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Infinico and Kesselrun is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Kesselrun Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kesselrun Resources 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 Kesselrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kesselrun Resources has no effect on the direction of Infinico Metals i.e., Infinico Metals and Kesselrun Resources go up and down completely randomly.
Pair Corralation between Infinico Metals and Kesselrun Resources
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Kesselrun Resources. In addition to that, Infinico Metals is 1.21 times more volatile than Kesselrun Resources. It trades about -0.02 of its total potential returns per unit of risk. Kesselrun Resources is currently generating about 0.01 per unit of volatility. If you would invest 6.00 in Kesselrun Resources on September 3, 2024 and sell it today you would lose (2.00) from holding Kesselrun Resources or give up 33.33% 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. Kesselrun Resources
Performance |
| Timeline |
| Infinico Metals Corp |
| Kesselrun Resources |
Infinico Metals and Kesselrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Kesselrun Resources
The main advantage of trading using opposite Infinico Metals and Kesselrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Kesselrun Resources 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 Kesselrun Resources will offset losses from the drop in Kesselrun Resources' long position.| Infinico Metals vs. NeuPath Health | Infinico Metals vs. Atrium Mortgage Investment | Infinico Metals vs. Maple Peak Investments | Infinico Metals vs. WELL Health Technologies |
| Kesselrun Resources vs. Magnum Goldcorp | Kesselrun Resources vs. Lupaka Gold Corp | Kesselrun Resources vs. Black Widow Resources |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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