Correlation Between Infinico Metals and Magna Mining
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Magna Mining 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 Magna Mining 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 Magna Mining, you can compare the effects of market volatilities on Infinico Metals and Magna Mining 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 Magna Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Magna Mining.
Diversification Opportunities for Infinico Metals and Magna Mining
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Magna is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna 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 Magna Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of Infinico Metals i.e., Infinico Metals and Magna Mining go up and down completely randomly.
Pair Corralation between Infinico Metals and Magna Mining
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Magna Mining. In addition to that, Infinico Metals is 2.74 times more volatile than Magna Mining. It trades about -0.03 of its total potential returns per unit of risk. Magna Mining is currently generating about 0.33 per unit of volatility. If you would invest 112.00 in Magna Mining on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Magna Mining or generate 30.36% 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. Magna Mining
Performance |
| Timeline |
| Infinico Metals Corp |
| Magna Mining |
Infinico Metals and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Magna Mining
The main advantage of trading using opposite Infinico Metals and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Magna Mining 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 Magna Mining will offset losses from the drop in Magna Mining'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 |
| Magna Mining vs. Kiplin Metals | Magna Mining vs. Pure Energy Minerals | Magna Mining vs. Noram Lithium Corp | Magna Mining vs. Minnova 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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