Correlation Between Infinico Metals and Minera Alamos
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Minera Alamos 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 Minera Alamos 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 Minera Alamos, you can compare the effects of market volatilities on Infinico Metals and Minera Alamos 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 Minera Alamos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Minera Alamos.
Diversification Opportunities for Infinico Metals and Minera Alamos
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Minera is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Minera Alamos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minera Alamos 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 Minera Alamos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minera Alamos has no effect on the direction of Infinico Metals i.e., Infinico Metals and Minera Alamos go up and down completely randomly.
Pair Corralation between Infinico Metals and Minera Alamos
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Minera Alamos. In addition to that, Infinico Metals is 2.33 times more volatile than Minera Alamos. It trades about 0.0 of its total potential returns per unit of risk. Minera Alamos is currently generating about 0.02 per unit of volatility. If you would invest 30.00 in Minera Alamos on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Minera Alamos or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Infinico Metals Corp vs. Minera Alamos
Performance |
| Timeline |
| Infinico Metals Corp |
| Minera Alamos |
Infinico Metals and Minera Alamos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Minera Alamos
The main advantage of trading using opposite Infinico Metals and Minera Alamos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Minera Alamos 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 Minera Alamos will offset losses from the drop in Minera Alamos' 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 |
| Minera Alamos vs. First Majestic Silver | Minera Alamos vs. Ivanhoe Energy | Minera Alamos vs. Orezone Gold Corp | Minera Alamos vs. Faraday Copper 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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