Correlation Between Integra Resources and Capella Minerals
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Capella 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 Capella 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 Capella Minerals Limited, you can compare the effects of market volatilities on Integra Resources and Capella 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 Capella Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Capella Minerals.
Diversification Opportunities for Integra Resources and Capella Minerals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integra and Capella is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Capella Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capella 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 Capella Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capella Minerals has no effect on the direction of Integra Resources i.e., Integra Resources and Capella Minerals go up and down completely randomly.
Pair Corralation between Integra Resources and Capella Minerals
Given the investment horizon of 90 days Integra Resources Corp is expected to generate 0.92 times more return on investment than Capella Minerals. However, Integra Resources Corp is 1.08 times less risky than Capella Minerals. It trades about 0.03 of its potential returns per unit of risk. Capella Minerals Limited is currently generating about 0.0 per unit of risk. If you would invest 68.00 in Integra Resources Corp on September 3, 2024 and sell it today you would earn a total of 24.00 from holding Integra Resources Corp or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Integra Resources Corp vs. Capella Minerals Limited
Performance |
| Timeline |
| Integra Resources Corp |
| Capella Minerals |
Integra Resources and Capella Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Capella Minerals
The main advantage of trading using opposite Integra Resources and Capella Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Capella 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 Capella Minerals will offset losses from the drop in Capella Minerals' long position.| Integra Resources vs. Triple Flag Precious | Integra Resources vs. Endeavour Silver Corp | Integra Resources vs. SilverCrest Metals | Integra Resources vs. Gatos Silver |
| Capella Minerals vs. Star Royalties | Capella Minerals vs. Defiance Silver Corp | Capella Minerals vs. Diamond Fields Resources | Capella Minerals vs. GoGold Resources |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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