Correlation Between Infinico Metals and Libero Copper
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Libero Copper 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 Libero Copper 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 Libero Copper Corp, you can compare the effects of market volatilities on Infinico Metals and Libero Copper 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 Libero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Libero Copper.
Diversification Opportunities for Infinico Metals and Libero Copper
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Libero is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Libero Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libero Copper 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 Libero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libero Copper Corp has no effect on the direction of Infinico Metals i.e., Infinico Metals and Libero Copper go up and down completely randomly.
Pair Corralation between Infinico Metals and Libero Copper
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Libero Copper. In addition to that, Infinico Metals is 1.25 times more volatile than Libero Copper Corp. It trades about -0.14 of its total potential returns per unit of risk. Libero Copper Corp is currently generating about 0.08 per unit of volatility. If you would invest 28.00 in Libero Copper Corp on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Libero Copper Corp or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Infinico Metals Corp vs. Libero Copper Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Libero Copper Corp |
Infinico Metals and Libero Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Libero Copper
The main advantage of trading using opposite Infinico Metals and Libero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Libero Copper 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 Libero Copper will offset losses from the drop in Libero Copper's long position.| Infinico Metals vs. Rubicon Organics | Infinico Metals vs. T2 Metals Corp | Infinico Metals vs. Maple Leaf Foods | Infinico Metals vs. Intact Financial Corp |
| Libero Copper vs. Champion Iron | Libero Copper vs. Diamond Estates Wines | Libero Copper vs. Bragg Gaming Group | Libero Copper vs. Gfl Environmental Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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