Correlation Between Integra Resources and AbraSilver Resource
Can any of the company-specific risk be diversified away by investing in both Integra Resources and AbraSilver Resource 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 AbraSilver Resource 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 AbraSilver Resource Corp, you can compare the effects of market volatilities on Integra Resources and AbraSilver Resource 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 AbraSilver Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and AbraSilver Resource.
Diversification Opportunities for Integra Resources and AbraSilver Resource
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Integra and AbraSilver is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and AbraSilver Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbraSilver Resource Corp 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 AbraSilver Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbraSilver Resource Corp has no effect on the direction of Integra Resources i.e., Integra Resources and AbraSilver Resource go up and down completely randomly.
Pair Corralation between Integra Resources and AbraSilver Resource
Given the investment horizon of 90 days Integra Resources Corp is expected to under-perform the AbraSilver Resource. But the stock apears to be less risky and, when comparing its historical volatility, Integra Resources Corp is 1.01 times less risky than AbraSilver Resource. The stock trades about -0.24 of its potential returns per unit of risk. The AbraSilver Resource Corp is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 224.00 in AbraSilver Resource Corp on September 2, 2024 and sell it today you would lose (28.00) from holding AbraSilver Resource Corp or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Resources Corp vs. AbraSilver Resource Corp
Performance |
| Timeline |
| Integra Resources Corp |
| AbraSilver Resource Corp |
Integra Resources and AbraSilver Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and AbraSilver Resource
The main advantage of trading using opposite Integra Resources and AbraSilver Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, AbraSilver Resource 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 AbraSilver Resource will offset losses from the drop in AbraSilver Resource's long position.| Integra Resources vs. Silver Tiger Metals | Integra Resources vs. Defiance Silver Corp | Integra Resources vs. Summa Silver Corp | Integra Resources vs. AbraSilver Resource Corp |
| AbraSilver Resource vs. Defiance Silver Corp | AbraSilver Resource vs. Metallic Minerals Corp | AbraSilver Resource vs. Summa Silver Corp | AbraSilver Resource vs. Honey Badger 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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