Correlation Between Infinico Metals and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and SSR Mining 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 SSR Mining 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 SSR Mining, you can compare the effects of market volatilities on Infinico Metals and SSR Mining 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and SSR Mining.
Diversification Opportunities for Infinico Metals and SSR Mining
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and SSR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Infinico Metals i.e., Infinico Metals and SSR Mining go up and down completely randomly.
Pair Corralation between Infinico Metals and SSR Mining
Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the SSR Mining. In addition to that, Infinico Metals is 2.21 times more volatile than SSR Mining. It trades about -0.17 of its total potential returns per unit of risk. SSR Mining is currently generating about -0.08 per unit of volatility. If you would invest 881.00 in SSR Mining on August 28, 2024 and sell it today you would lose (78.00) from holding SSR Mining or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Infinico Metals Corp vs. SSR Mining
Performance |
| Timeline |
| Infinico Metals Corp |
| SSR Mining |
Infinico Metals and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and SSR Mining
The main advantage of trading using opposite Infinico Metals and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp |
| SSR Mining vs. Pan American Silver | SSR Mining vs. MAG Silver Corp | SSR Mining vs. Osisko Gold Ro | SSR Mining vs. Sandstorm Gold Ltd |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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