Correlation Between Infinico Metals and Triple Flag
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Triple Flag 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 Triple Flag 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 Triple Flag Precious, you can compare the effects of market volatilities on Infinico Metals and Triple Flag 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 Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Triple Flag.
Diversification Opportunities for Infinico Metals and Triple Flag
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Triple is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious 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 Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of Infinico Metals i.e., Infinico Metals and Triple Flag go up and down completely randomly.
Pair Corralation between Infinico Metals and Triple Flag
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 5.98 times more return on investment than Triple Flag. However, Infinico Metals is 5.98 times more volatile than Triple Flag Precious. It trades about 0.01 of its potential returns per unit of risk. Triple Flag Precious is currently generating about 0.07 per unit of risk. If you would invest 7.50 in Infinico Metals Corp on September 1, 2024 and sell it today you would lose (5.00) from holding Infinico Metals Corp or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. Triple Flag Precious
Performance |
| Timeline |
| Infinico Metals Corp |
| Triple Flag Precious |
Infinico Metals and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Triple Flag
The main advantage of trading using opposite Infinico Metals and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag's long position.| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Orezone Gold Corp | Infinico Metals vs. Faraday Copper Corp |
| Triple Flag vs. Minaurum Gold | Triple Flag vs. Dolly Varden Silver | Triple Flag vs. Santacruz Silv | Triple Flag vs. GoGold Resources |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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