Correlation Between Infinico Metals and Steppe Gold
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Steppe Gold 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 Steppe Gold 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 Steppe Gold, you can compare the effects of market volatilities on Infinico Metals and Steppe Gold 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 Steppe Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Steppe Gold.
Diversification Opportunities for Infinico Metals and Steppe Gold
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infinico and Steppe is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Steppe Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steppe Gold 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 Steppe Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steppe Gold has no effect on the direction of Infinico Metals i.e., Infinico Metals and Steppe Gold go up and down completely randomly.
Pair Corralation between Infinico Metals and Steppe Gold
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 3.74 times more return on investment than Steppe Gold. However, Infinico Metals is 3.74 times more volatile than Steppe Gold. It trades about 0.03 of its potential returns per unit of risk. Steppe Gold is currently generating about -0.02 per unit of risk. If you would invest 5.50 in Infinico Metals Corp on November 2, 2024 and sell it today you would lose (4.00) from holding Infinico Metals Corp or give up 72.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.44% |
| Values | Daily Returns |
Infinico Metals Corp vs. Steppe Gold
Performance |
| Timeline |
| Infinico Metals Corp |
| Steppe Gold |
Infinico Metals and Steppe Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Steppe Gold
The main advantage of trading using opposite Infinico Metals and Steppe Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Steppe Gold 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 Steppe Gold will offset losses from the drop in Steppe Gold's long position.| Infinico Metals vs. Imperial Metals | Infinico Metals vs. Pace Metals | Infinico Metals vs. Storage Vault Canada | Infinico Metals vs. Pembina Pipeline Corp |
| Steppe Gold vs. Tudor Gold Corp | Steppe Gold vs. Erdene Resource Development | Steppe Gold vs. Troilus Gold Corp | Steppe Gold vs. Liberty 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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