Correlation Between Infinico Metals and Thor Explorations
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Thor Explorations 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 Thor Explorations 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 Thor Explorations, you can compare the effects of market volatilities on Infinico Metals and Thor Explorations 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 Thor Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Thor Explorations.
Diversification Opportunities for Infinico Metals and Thor Explorations
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Thor is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Thor Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Explorations 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 Thor Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Explorations has no effect on the direction of Infinico Metals i.e., Infinico Metals and Thor Explorations go up and down completely randomly.
Pair Corralation between Infinico Metals and Thor Explorations
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 8.17 times more return on investment than Thor Explorations. However, Infinico Metals is 8.17 times more volatile than Thor Explorations. It trades about 0.09 of its potential returns per unit of risk. Thor Explorations is currently generating about 0.27 per unit of risk. If you would invest 1.50 in Infinico Metals Corp on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Infinico Metals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinico Metals Corp vs. Thor Explorations
Performance |
| Timeline |
| Infinico Metals Corp |
| Thor Explorations |
Infinico Metals and Thor Explorations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Thor Explorations
The main advantage of trading using opposite Infinico Metals and Thor Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Thor Explorations 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 Thor Explorations will offset losses from the drop in Thor Explorations' long position.| Infinico Metals vs. NV Gold Corp | Infinico Metals vs. Prosper Gold Corp | Infinico Metals vs. Kesselrun Resources | Infinico Metals vs. iShares Canadian HYBrid |
| Thor Explorations vs. Sarama Resource | Thor Explorations vs. Taranis Resources | Thor Explorations vs. Teras 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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