Correlation Between Infinico Metals and InZinc Mining
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and InZinc 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 InZinc 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 InZinc Mining, you can compare the effects of market volatilities on Infinico Metals and InZinc 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 InZinc Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and InZinc Mining.
Diversification Opportunities for Infinico Metals and InZinc Mining
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and InZinc is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and InZinc Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InZinc Mining 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 InZinc Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InZinc Mining has no effect on the direction of Infinico Metals i.e., Infinico Metals and InZinc Mining go up and down completely randomly.
Pair Corralation between Infinico Metals and InZinc Mining
Assuming the 90 days trading horizon Infinico Metals is expected to generate 1.78 times less return on investment than InZinc Mining. In addition to that, Infinico Metals is 5.2 times more volatile than InZinc Mining. It trades about 0.02 of its total potential returns per unit of risk. InZinc Mining is currently generating about 0.19 per unit of volatility. If you would invest 77.00 in InZinc Mining on October 24, 2024 and sell it today you would earn a total of 11.00 from holding InZinc Mining or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. InZinc Mining
Performance |
| Timeline |
| Infinico Metals Corp |
| InZinc Mining |
Infinico Metals and InZinc Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and InZinc Mining
The main advantage of trading using opposite Infinico Metals and InZinc Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, InZinc 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 InZinc Mining will offset losses from the drop in InZinc Mining's long position.| Infinico Metals vs. Lion One Metals | Infinico Metals vs. New Found Gold | Infinico Metals vs. Eskay Mining Corp | Infinico Metals vs. Labrador Gold Corp |
| InZinc Mining vs. Brunswick Exploration | InZinc Mining vs. Sigma Lithium Resources | InZinc Mining vs. Emerita Resources Corp | InZinc Mining vs. Frontier Lithium |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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