Correlation Between Infinico Metals and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Nicola 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 Nicola 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 Nicola Mining, you can compare the effects of market volatilities on Infinico Metals and Nicola 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 Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Nicola Mining.
Diversification Opportunities for Infinico Metals and Nicola Mining
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Infinico and Nicola is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola 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 Nicola Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicola Mining has no effect on the direction of Infinico Metals i.e., Infinico Metals and Nicola Mining go up and down completely randomly.
Pair Corralation between Infinico Metals and Nicola Mining
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Nicola Mining. In addition to that, Infinico Metals is 2.49 times more volatile than Nicola Mining. It trades about -0.12 of its total potential returns per unit of risk. Nicola Mining is currently generating about -0.09 per unit of volatility. If you would invest 31.00 in Nicola Mining on August 24, 2024 and sell it today you would lose (3.00) from holding Nicola Mining or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Infinico Metals Corp vs. Nicola Mining
Performance |
| Timeline |
| Infinico Metals Corp |
| Nicola Mining |
Infinico Metals and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Nicola Mining
The main advantage of trading using opposite Infinico Metals and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Nicola 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 Nicola Mining will offset losses from the drop in Nicola Mining's long position.| Infinico Metals vs. Rainy Mountain Royalty | Infinico Metals vs. Plato Gold Corp | Infinico Metals vs. Rochester Resources | Infinico Metals vs. Forstrong Global Income |
| Nicola Mining vs. Rainy Mountain Royalty | Nicola Mining vs. Plato Gold Corp | Nicola Mining vs. Rochester Resources | Nicola Mining vs. Forstrong Global Income |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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