Correlation Between Integra Resources and Fireweed Zinc
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Fireweed Zinc 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 Integra Resources and Fireweed Zinc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra Resources Corp and Fireweed Zinc, you can compare the effects of market volatilities on Integra Resources and Fireweed Zinc 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 Integra Resources with a short position of Fireweed Zinc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Fireweed Zinc.
Diversification Opportunities for Integra Resources and Fireweed Zinc
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and Fireweed is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Fireweed Zinc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fireweed Zinc and Integra Resources 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 Integra Resources Corp are associated (or correlated) with Fireweed Zinc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fireweed Zinc has no effect on the direction of Integra Resources i.e., Integra Resources and Fireweed Zinc go up and down completely randomly.
Pair Corralation between Integra Resources and Fireweed Zinc
Assuming the 90 days horizon Integra Resources Corp is expected to generate 1.47 times more return on investment than Fireweed Zinc. However, Integra Resources is 1.47 times more volatile than Fireweed Zinc. It trades about 0.27 of its potential returns per unit of risk. Fireweed Zinc is currently generating about -0.02 per unit of risk. If you would invest 127.00 in Integra Resources Corp on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Integra Resources Corp or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Resources Corp vs. Fireweed Zinc
Performance |
| Timeline |
| Integra Resources Corp |
| Fireweed Zinc |
Integra Resources and Fireweed Zinc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Fireweed Zinc
The main advantage of trading using opposite Integra Resources and Fireweed Zinc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Fireweed Zinc 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 Fireweed Zinc will offset losses from the drop in Fireweed Zinc's long position.| Integra Resources vs. Liberty Gold Corp | Integra Resources vs. Rio2 | Integra Resources vs. Revival Gold | Integra Resources vs. O3 Mining |
| Fireweed Zinc vs. Integra Resources Corp | Fireweed Zinc vs. Tinka Resources Limited | Fireweed Zinc vs. Osisko Metals | Fireweed Zinc vs. Lion One Metals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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