Correlation Between Infinico Metals and Maritime Resources
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Maritime 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 Maritime 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 Maritime Resources Corp, you can compare the effects of market volatilities on Infinico Metals and Maritime 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 Maritime Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Maritime Resources.
Diversification Opportunities for Infinico Metals and Maritime Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Maritime is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Maritime Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maritime Resources 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 Maritime Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maritime Resources Corp has no effect on the direction of Infinico Metals i.e., Infinico Metals and Maritime Resources go up and down completely randomly.
Pair Corralation between Infinico Metals and Maritime Resources
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Maritime Resources. In addition to that, Infinico Metals is 1.65 times more volatile than Maritime Resources Corp. It trades about -0.17 of its total potential returns per unit of risk. Maritime Resources Corp is currently generating about -0.04 per unit of volatility. If you would invest 6.00 in Maritime Resources Corp on August 28, 2024 and sell it today you would lose (0.50) from holding Maritime Resources Corp or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Infinico Metals Corp vs. Maritime Resources Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Maritime Resources Corp |
Infinico Metals and Maritime Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Maritime Resources
The main advantage of trading using opposite Infinico Metals and Maritime Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Maritime 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 Maritime Resources will offset losses from the drop in Maritime Resources' long position.The idea behind Infinico Metals Corp and Maritime Resources Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |