Correlation Between Infinico Metals and Platinum Group
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Platinum Group 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 Platinum Group 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 Platinum Group Metals, you can compare the effects of market volatilities on Infinico Metals and Platinum Group 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 Platinum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Platinum Group.
Diversification Opportunities for Infinico Metals and Platinum Group
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Platinum is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals 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 Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Infinico Metals i.e., Infinico Metals and Platinum Group go up and down completely randomly.
Pair Corralation between Infinico Metals and Platinum Group
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Platinum Group. In addition to that, Infinico Metals is 2.1 times more volatile than Platinum Group Metals. It trades about -0.05 of its total potential returns per unit of risk. Platinum Group Metals is currently generating about -0.08 per unit of volatility. If you would invest 275.00 in Platinum Group Metals on August 25, 2024 and sell it today you would lose (29.00) from holding Platinum Group Metals or give up 10.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. Platinum Group Metals
Performance |
| Timeline |
| Infinico Metals Corp |
| Platinum Group Metals |
Infinico Metals and Platinum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Platinum Group
The main advantage of trading using opposite Infinico Metals and Platinum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Platinum Group 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 Platinum Group will offset losses from the drop in Platinum Group'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 |
| Platinum Group vs. Eastern Platinum Limited | Platinum Group vs. Entree Resources | Platinum Group vs. Solitario Exploration Royalty | Platinum Group vs. Minco Silver |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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