Correlation Between Infinico Metals and SilverCrest Metals
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and SilverCrest Metals 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 SilverCrest Metals 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 SilverCrest Metals, you can compare the effects of market volatilities on Infinico Metals and SilverCrest Metals 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 SilverCrest Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and SilverCrest Metals.
Diversification Opportunities for Infinico Metals and SilverCrest Metals
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and SilverCrest is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and SilverCrest Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverCrest 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 SilverCrest Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverCrest Metals has no effect on the direction of Infinico Metals i.e., Infinico Metals and SilverCrest Metals go up and down completely randomly.
Pair Corralation between Infinico Metals and SilverCrest Metals
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the SilverCrest Metals. In addition to that, Infinico Metals is 3.38 times more volatile than SilverCrest Metals. It trades about -0.01 of its total potential returns per unit of risk. SilverCrest Metals is currently generating about 0.11 per unit of volatility. If you would invest 750.00 in SilverCrest Metals on August 29, 2024 and sell it today you would earn a total of 655.00 from holding SilverCrest Metals or generate 87.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.56% |
| Values | Daily Returns |
Infinico Metals Corp vs. SilverCrest Metals
Performance |
| Timeline |
| Infinico Metals Corp |
| SilverCrest Metals |
Infinico Metals and SilverCrest Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and SilverCrest Metals
The main advantage of trading using opposite Infinico Metals and SilverCrest Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, SilverCrest Metals 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 SilverCrest Metals will offset losses from the drop in SilverCrest Metals' 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 |
| SilverCrest Metals vs. MAG Silver Corp | SilverCrest Metals vs. Pan American Silver | SilverCrest Metals vs. SSR Mining | SilverCrest Metals vs. Equinox Gold 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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