Correlation Between Infinico Metals and Skeena Resources
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Skeena 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 Skeena 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 Skeena Resources, you can compare the effects of market volatilities on Infinico Metals and Skeena 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 Skeena Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Skeena Resources.
Diversification Opportunities for Infinico Metals and Skeena Resources
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Skeena is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Skeena Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skeena 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 Skeena Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skeena Resources has no effect on the direction of Infinico Metals i.e., Infinico Metals and Skeena Resources go up and down completely randomly.
Pair Corralation between Infinico Metals and Skeena Resources
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 2.95 times more return on investment than Skeena Resources. However, Infinico Metals is 2.95 times more volatile than Skeena Resources. It trades about 0.03 of its potential returns per unit of risk. Skeena Resources is currently generating about 0.05 per unit of risk. If you would invest 4.00 in Infinico Metals Corp on August 30, 2024 and sell it today you would lose (2.00) from holding Infinico Metals Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.61% |
| Values | Daily Returns |
Infinico Metals Corp vs. Skeena Resources
Performance |
| Timeline |
| Infinico Metals Corp |
| Skeena Resources |
Infinico Metals and Skeena Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Skeena Resources
The main advantage of trading using opposite Infinico Metals and Skeena Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Skeena 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 Skeena Resources will offset losses from the drop in Skeena Resources' long position.| Infinico Metals vs. Arizona Sonoran Copper | Infinico Metals vs. Filo Mining Corp | Infinico Metals vs. Marimaca Copper Corp | Infinico Metals vs. iShares Canadian HYBrid |
| Skeena Resources vs. First Majestic Silver | Skeena Resources vs. Ivanhoe Energy | Skeena Resources vs. Orezone Gold Corp | Skeena Resources 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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