Correlation Between Infinico Metals and Stillwater Critical
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Stillwater Critical 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 Stillwater Critical 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 Stillwater Critical Minerals, you can compare the effects of market volatilities on Infinico Metals and Stillwater Critical 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 Stillwater Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Stillwater Critical.
Diversification Opportunities for Infinico Metals and Stillwater Critical
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Stillwater is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Stillwater Critical Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillwater Critical 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 Stillwater Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillwater Critical has no effect on the direction of Infinico Metals i.e., Infinico Metals and Stillwater Critical go up and down completely randomly.
Pair Corralation between Infinico Metals and Stillwater Critical
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Stillwater Critical. In addition to that, Infinico Metals is 1.2 times more volatile than Stillwater Critical Minerals. It trades about -0.17 of its total potential returns per unit of risk. Stillwater Critical Minerals is currently generating about -0.19 per unit of volatility. If you would invest 21.00 in Stillwater Critical Minerals on August 29, 2024 and sell it today you would lose (7.00) from holding Stillwater Critical Minerals or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Infinico Metals Corp vs. Stillwater Critical Minerals
Performance |
| Timeline |
| Infinico Metals Corp |
| Stillwater Critical |
Infinico Metals and Stillwater Critical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Stillwater Critical
The main advantage of trading using opposite Infinico Metals and Stillwater Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Stillwater Critical 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 Stillwater Critical will offset losses from the drop in Stillwater Critical's long position.| Infinico Metals vs. Rubicon Organics | Infinico Metals vs. T2 Metals Corp | Infinico Metals vs. Maple Leaf Foods | Infinico Metals vs. Intact Financial Corp |
| Stillwater Critical vs. First Majestic Silver | Stillwater Critical vs. Ivanhoe Energy | Stillwater Critical vs. Orezone Gold Corp | Stillwater Critical vs. Faraday Copper 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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