Correlation Between Infinico Metals and Xtra Gold
Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Xtra 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 Xtra 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 Xtra Gold Resources Corp, you can compare the effects of market volatilities on Infinico Metals and Xtra 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 Xtra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Xtra Gold.
Diversification Opportunities for Infinico Metals and Xtra Gold
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinico and Xtra is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Xtra Gold Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtra Gold Resources 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 Xtra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtra Gold Resources has no effect on the direction of Infinico Metals i.e., Infinico Metals and Xtra Gold go up and down completely randomly.
Pair Corralation between Infinico Metals and Xtra Gold
Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 4.05 times more return on investment than Xtra Gold. However, Infinico Metals is 4.05 times more volatile than Xtra Gold Resources Corp. It trades about 0.04 of its potential returns per unit of risk. Xtra Gold Resources Corp is currently generating about 0.08 per unit of risk. If you would invest 4.00 in Infinico Metals Corp on September 3, 2024 and sell it today you would lose (1.50) from holding Infinico Metals Corp or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.62% |
| Values | Daily Returns |
Infinico Metals Corp vs. Xtra Gold Resources Corp
Performance |
| Timeline |
| Infinico Metals Corp |
| Xtra Gold Resources |
Infinico Metals and Xtra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinico Metals and Xtra Gold
The main advantage of trading using opposite Infinico Metals and Xtra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinico Metals position performs unexpectedly, Xtra 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 Xtra Gold will offset losses from the drop in Xtra Gold's long position.| Infinico Metals vs. NeuPath Health | Infinico Metals vs. Atrium Mortgage Investment | Infinico Metals vs. Maple Peak Investments | Infinico Metals vs. WELL Health Technologies |
| Xtra Gold vs. Algoma Steel Group | Xtra Gold vs. Champion Iron | Xtra Gold vs. International Zeolite Corp | Xtra Gold vs. European Residential Real |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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