Correlation Between Infinico Metals and Neo Battery
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Neo Battery 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 Neo Battery 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 Neo Battery Materials, you can compare the effects of market volatilities on Infinico Metals and Neo Battery 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 Neo Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Neo Battery.
Diversification Opportunities for Infinico Metals and Neo Battery
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Neo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Neo Battery Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Battery Materials 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 Neo Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Battery Materials has no effect on the direction of Infinico Metals i.e., Infinico Metals and Neo Battery go up and down completely randomly.
Pair Corralation between Infinico Metals and Neo Battery
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Neo Battery. In addition to that, Infinico Metals is 1.02 times more volatile than Neo Battery Materials. It trades about -0.17 of its total potential returns per unit of risk. Neo Battery Materials is currently generating about 0.28 per unit of volatility. If you would invest 46.00 in Neo Battery Materials on August 27, 2024 and sell it today you would earn a total of 25.00 from holding Neo Battery Materials or generate 54.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Infinico Metals Corp vs. Neo Battery Materials
Performance |
| Timeline |
| Infinico Metals Corp |
| Neo Battery Materials |
Infinico Metals and Neo Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Neo Battery
The main advantage of trading using opposite Infinico Metals and Neo Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Neo Battery 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 Neo Battery will offset losses from the drop in Neo Battery's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp |
| Neo Battery vs. Cielo Waste Solutions | Neo Battery vs. Vision Lithium | Neo Battery vs. Fobi AI | Neo Battery vs. Graphene Manufacturing Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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