Correlation Between Infinico Metals and Midnight Sun
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Midnight Sun 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 Midnight Sun 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 Midnight Sun Mining, you can compare the effects of market volatilities on Infinico Metals and Midnight Sun 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 Midnight Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Midnight Sun.
Diversification Opportunities for Infinico Metals and Midnight Sun
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Infinico and Midnight is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Midnight Sun Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midnight Sun 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 Midnight Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midnight Sun Mining has no effect on the direction of Infinico Metals i.e., Infinico Metals and Midnight Sun go up and down completely randomly.
Pair Corralation between Infinico Metals and Midnight Sun
Assuming the 90 days trading horizon Infinico Metals is expected to generate 2.34 times less return on investment than Midnight Sun. In addition to that, Infinico Metals is 1.57 times more volatile than Midnight Sun Mining. It trades about 0.02 of its total potential returns per unit of risk. Midnight Sun Mining is currently generating about 0.07 per unit of volatility. If you would invest 27.00 in Midnight Sun Mining on November 28, 2024 and sell it today you would earn a total of 37.00 from holding Midnight Sun Mining or generate 137.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. Midnight Sun Mining
Performance |
| Timeline |
| Infinico Metals Corp |
| Midnight Sun Mining |
Infinico Metals and Midnight Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Midnight Sun
The main advantage of trading using opposite Infinico Metals and Midnight Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Midnight Sun 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 Midnight Sun will offset losses from the drop in Midnight Sun's long position.| Infinico Metals vs. North American Construction | Infinico Metals vs. Empire Metals Corp | Infinico Metals vs. Pace Metals | Infinico Metals vs. Nicola Mining |
| Midnight Sun vs. New Destiny Mining | Midnight Sun vs. Magnum Goldcorp | Midnight Sun vs. Asiabasemetals | Midnight Sun vs. Lupaka 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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