Correlation Between Infinico Metals and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Mayfair Gold 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 Mayfair Gold 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 Mayfair Gold Corp, you can compare the effects of market volatilities on Infinico Metals and Mayfair Gold 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 Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Mayfair Gold.
Diversification Opportunities for Infinico Metals and Mayfair Gold
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Mayfair is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Infinico Metals i.e., Infinico Metals and Mayfair Gold go up and down completely randomly.
Pair Corralation between Infinico Metals and Mayfair Gold
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Mayfair Gold. In addition to that, Infinico Metals is 2.87 times more volatile than Mayfair Gold Corp. It trades about -0.17 of its total potential returns per unit of risk. Mayfair Gold Corp is currently generating about -0.12 per unit of volatility. If you would invest 210.00 in Mayfair Gold Corp on August 27, 2024 and sell it today you would lose (19.00) from holding Mayfair Gold Corp or give up 9.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Infinico Metals Corp vs. Mayfair Gold Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Mayfair Gold Corp |
Infinico Metals and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Mayfair Gold
The main advantage of trading using opposite Infinico Metals and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Mayfair Gold 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp |
| Mayfair Gold vs. First Majestic Silver | Mayfair Gold vs. Ivanhoe Energy | Mayfair Gold vs. Orezone Gold 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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