Correlation Between Infinico Metals and Rockhaven Resources
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Rockhaven Resources 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 Rockhaven Resources 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 Rockhaven Resources, you can compare the effects of market volatilities on Infinico Metals and Rockhaven Resources 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 Rockhaven Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Rockhaven Resources.
Diversification Opportunities for Infinico Metals and Rockhaven Resources
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Rockhaven is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Rockhaven Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rockhaven Resources 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 Rockhaven Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rockhaven Resources has no effect on the direction of Infinico Metals i.e., Infinico Metals and Rockhaven Resources go up and down completely randomly.
Pair Corralation between Infinico Metals and Rockhaven Resources
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Rockhaven Resources. In addition to that, Infinico Metals is 1.5 times more volatile than Rockhaven Resources. It trades about -0.03 of its total potential returns per unit of risk. Rockhaven Resources is currently generating about 0.2 per unit of volatility. If you would invest 7.00 in Rockhaven Resources on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Rockhaven Resources or generate 28.57% 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. Rockhaven Resources
Performance |
| Timeline |
| Infinico Metals Corp |
| Rockhaven Resources |
Infinico Metals and Rockhaven Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Rockhaven Resources
The main advantage of trading using opposite Infinico Metals and Rockhaven Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Rockhaven Resources 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 Rockhaven Resources will offset losses from the drop in Rockhaven Resources' 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 |
| Rockhaven Resources vs. Minaurum Gold | Rockhaven Resources vs. Dolly Varden Silver | Rockhaven Resources vs. Santacruz Silv | Rockhaven Resources vs. GoGold Resources |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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