Correlation Between Infinico Metals and Americas Silver
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Americas Silver 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 Americas Silver 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 Americas Silver Corp, you can compare the effects of market volatilities on Infinico Metals and Americas Silver 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 Americas Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Americas Silver.
Diversification Opportunities for Infinico Metals and Americas Silver
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinico and Americas is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Americas Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Silver Corp 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 Americas Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Silver Corp has no effect on the direction of Infinico Metals i.e., Infinico Metals and Americas Silver go up and down completely randomly.
Pair Corralation between Infinico Metals and Americas Silver
Assuming the 90 days trading horizon Infinico Metals is expected to generate 2.87 times less return on investment than Americas Silver. In addition to that, Infinico Metals is 6.38 times more volatile than Americas Silver Corp. It trades about 0.02 of its total potential returns per unit of risk. Americas Silver Corp is currently generating about 0.4 per unit of volatility. If you would invest 55.00 in Americas Silver Corp on October 23, 2024 and sell it today you would earn a total of 15.00 from holding Americas Silver Corp or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Infinico Metals Corp vs. Americas Silver Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Americas Silver Corp |
Infinico Metals and Americas Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Americas Silver
The main advantage of trading using opposite Infinico Metals and Americas Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Americas Silver 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 Americas Silver will offset losses from the drop in Americas Silver's long position.| Infinico Metals vs. Lion One Metals | Infinico Metals vs. New Found Gold | Infinico Metals vs. Eskay Mining Corp | Infinico Metals vs. Labrador Gold Corp |
| Americas Silver vs. Excellon Resources | Americas Silver vs. GoGold Resources | Americas Silver vs. Fortuna Silver Mines | Americas Silver vs. Dolly Varden Silver |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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