Correlation Between Integra Resources and Gatos Silver
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Gatos Silver 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 Gatos Silver 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 Gatos Silver, you can compare the effects of market volatilities on Integra Resources and Gatos Silver 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 Gatos Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Gatos Silver.
Diversification Opportunities for Integra Resources and Gatos Silver
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Integra and Gatos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Gatos Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatos Silver 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 Gatos Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatos Silver has no effect on the direction of Integra Resources i.e., Integra Resources and Gatos Silver go up and down completely randomly.
Pair Corralation between Integra Resources and Gatos Silver
Given the investment horizon of 90 days Integra Resources Corp is expected to under-perform the Gatos Silver. In addition to that, Integra Resources is 1.08 times more volatile than Gatos Silver. It trades about -0.41 of its total potential returns per unit of risk. Gatos Silver is currently generating about -0.34 per unit of volatility. If you would invest 1,931 in Gatos Silver on August 27, 2024 and sell it today you would lose (396.00) from holding Gatos Silver or give up 20.51% 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. Gatos Silver
Performance |
| Timeline |
| Integra Resources Corp |
| Gatos Silver |
Integra Resources and Gatos Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Gatos Silver
The main advantage of trading using opposite Integra Resources and Gatos Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Gatos Silver 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 Gatos Silver will offset losses from the drop in Gatos Silver'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 |
| Gatos Silver vs. Endeavour Silver Corp | Gatos Silver vs. Metalla Royalty Streaming | Gatos Silver vs. New Pacific Metals | Gatos Silver vs. Hecla Mining |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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