Correlation Between Infinico Metals and Pacific Ridge
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Pacific Ridge 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 Pacific Ridge 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 Pacific Ridge Exploration, you can compare the effects of market volatilities on Infinico Metals and Pacific Ridge 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 Pacific Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Pacific Ridge.
Diversification Opportunities for Infinico Metals and Pacific Ridge
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infinico and Pacific is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Pacific Ridge Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Ridge Exploration 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 Pacific Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Ridge Exploration has no effect on the direction of Infinico Metals i.e., Infinico Metals and Pacific Ridge go up and down completely randomly.
Pair Corralation between Infinico Metals and Pacific Ridge
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Pacific Ridge. But the stock apears to be less risky and, when comparing its historical volatility, Infinico Metals Corp is 1.27 times less risky than Pacific Ridge. The stock trades about -0.04 of its potential returns per unit of risk. The Pacific Ridge Exploration is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Pacific Ridge Exploration on September 12, 2024 and sell it today you would lose (5.00) from holding Pacific Ridge Exploration or give up 71.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
Infinico Metals Corp vs. Pacific Ridge Exploration
Performance |
| Timeline |
| Infinico Metals Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pacific Ridge Exploration |
Infinico Metals and Pacific Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Pacific Ridge
The main advantage of trading using opposite Infinico Metals and Pacific Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Pacific Ridge 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 Pacific Ridge will offset losses from the drop in Pacific Ridge's long position.| Infinico Metals vs. Ressources Minieres Radisson | Infinico Metals vs. Galantas Gold Corp | Infinico Metals vs. Red Pine Exploration | Infinico Metals vs. Kore Mining |
| Pacific Ridge vs. Commander Resources | Pacific Ridge vs. Galantas Gold Corp | Pacific Ridge vs. Grande Portage Resources | Pacific Ridge vs. Wescan Goldfields |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |