Correlation Between Infinico Metals and Vista Gold
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Vista 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 Vista 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 Vista Gold, you can compare the effects of market volatilities on Infinico Metals and Vista 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 Vista Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Vista Gold.
Diversification Opportunities for Infinico Metals and Vista Gold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Infinico and Vista is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Vista Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista 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 Vista Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vista Gold has no effect on the direction of Infinico Metals i.e., Infinico Metals and Vista Gold go up and down completely randomly.
Pair Corralation between Infinico Metals and Vista Gold
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 2.62 times more return on investment than Vista Gold. However, Infinico Metals is 2.62 times more volatile than Vista Gold. It trades about 0.05 of its potential returns per unit of risk. Vista Gold is currently generating about -0.05 per unit of risk. If you would invest 2.50 in Infinico Metals Corp on September 4, 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 Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Infinico Metals Corp vs. Vista Gold
Performance |
| Timeline |
| Infinico Metals Corp |
| Vista Gold |
Infinico Metals and Vista Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Vista Gold
The main advantage of trading using opposite Infinico Metals and Vista Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Vista 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 Vista Gold will offset losses from the drop in Vista Gold'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 |
| Vista Gold vs. Trigon Metals | Vista Gold vs. RTG Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. Fremont Gold |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |