Correlation Between Infinico Metals and Majestic Gold
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Majestic 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 Majestic 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 Majestic Gold Corp, you can compare the effects of market volatilities on Infinico Metals and Majestic 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 Majestic Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Majestic Gold.
Diversification Opportunities for Infinico Metals and Majestic Gold
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Majestic is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Majestic Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Majestic 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 Majestic Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Majestic Gold Corp has no effect on the direction of Infinico Metals i.e., Infinico Metals and Majestic Gold go up and down completely randomly.
Pair Corralation between Infinico Metals and Majestic Gold
If you would invest 8.00 in Majestic Gold Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Majestic Gold Corp or generate 0.0% 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. Majestic Gold Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Majestic Gold Corp |
Infinico Metals and Majestic Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Majestic Gold
The main advantage of trading using opposite Infinico Metals and Majestic Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Majestic 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 Majestic Gold will offset losses from the drop in Majestic Gold's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp | Infinico Metals vs. Faraday Copper Corp |
| Majestic Gold vs. First Majestic Silver | Majestic Gold vs. Ivanhoe Energy | Majestic Gold vs. Orezone Gold Corp | Majestic Gold 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |