Correlation Between Infinico Metals and Silver Bullet
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Silver Bullet 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 Silver Bullet 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 Silver Bullet Mines, you can compare the effects of market volatilities on Infinico Metals and Silver Bullet 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 Silver Bullet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Silver Bullet.
Diversification Opportunities for Infinico Metals and Silver Bullet
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Silver is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Silver Bullet Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bullet Mines 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 Silver Bullet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bullet Mines has no effect on the direction of Infinico Metals i.e., Infinico Metals and Silver Bullet go up and down completely randomly.
Pair Corralation between Infinico Metals and Silver Bullet
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Silver Bullet. But the stock apears to be less risky and, when comparing its historical volatility, Infinico Metals Corp is 1.09 times less risky than Silver Bullet. The stock trades about -0.08 of its potential returns per unit of risk. The Silver Bullet Mines is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9.50 in Silver Bullet Mines on August 31, 2024 and sell it today you would earn a total of 4.50 from holding Silver Bullet Mines or generate 47.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.55% |
| Values | Daily Returns |
Infinico Metals Corp vs. Silver Bullet Mines
Performance |
| Timeline |
| Infinico Metals Corp |
| Silver Bullet Mines |
Infinico Metals and Silver Bullet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Silver Bullet
The main advantage of trading using opposite Infinico Metals and Silver Bullet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Silver Bullet 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 Silver Bullet will offset losses from the drop in Silver Bullet's long position.| Infinico Metals vs. Solar Alliance Energy | Infinico Metals vs. Global X Active | Infinico Metals vs. Financial 15 Split | Infinico Metals vs. Rubicon Organics |
| Silver Bullet vs. Summa Silver Corp | Silver Bullet vs. Guanajuato Silver | Silver Bullet vs. Goliath Resources | Silver Bullet vs. Santacruz Silv |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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