Correlation Between Integra Resources and Golden Minerals
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Golden Minerals 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 Golden Minerals 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 Golden Minerals, you can compare the effects of market volatilities on Integra Resources and Golden Minerals 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 Golden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Golden Minerals.
Diversification Opportunities for Integra Resources and Golden Minerals
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integra and Golden is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Golden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Minerals 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 Golden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Minerals has no effect on the direction of Integra Resources i.e., Integra Resources and Golden Minerals go up and down completely randomly.
Pair Corralation between Integra Resources and Golden Minerals
Given the investment horizon of 90 days Integra Resources Corp is expected to generate 1.05 times more return on investment than Golden Minerals. However, Integra Resources is 1.05 times more volatile than Golden Minerals. It trades about 0.04 of its potential returns per unit of risk. Golden Minerals is currently generating about -0.05 per unit of risk. If you would invest 56.00 in Integra Resources Corp on August 31, 2024 and sell it today you would earn a total of 34.00 from holding Integra Resources Corp or generate 60.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Resources Corp vs. Golden Minerals
Performance |
| Timeline |
| Integra Resources Corp |
| Golden Minerals |
Integra Resources and Golden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Golden Minerals
The main advantage of trading using opposite Integra Resources and Golden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Golden Minerals 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 Golden Minerals will offset losses from the drop in Golden Minerals' 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 |
| Golden Minerals vs. Summa Silver Corp | Golden Minerals vs. GoGold Resources | Golden Minerals vs. Scottie Resources Corp | Golden Minerals vs. Brixton 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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