Correlation Between Integra Resources and Sibanye Gold
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Sibanye Gold 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 Sibanye Gold 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 Sibanye Gold Ltd, you can compare the effects of market volatilities on Integra Resources and Sibanye Gold 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 Sibanye Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Sibanye Gold.
Diversification Opportunities for Integra Resources and Sibanye Gold
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integra and Sibanye is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Sibanye Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Gold 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 Sibanye Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Gold has no effect on the direction of Integra Resources i.e., Integra Resources and Sibanye Gold go up and down completely randomly.
Pair Corralation between Integra Resources and Sibanye Gold
Given the investment horizon of 90 days Integra Resources Corp is expected to generate 1.23 times more return on investment than Sibanye Gold. However, Integra Resources is 1.23 times more volatile than Sibanye Gold Ltd. It trades about 0.34 of its potential returns per unit of risk. Sibanye Gold Ltd is currently generating about 0.22 per unit of risk. If you would invest 88.00 in Integra Resources Corp on November 9, 2024 and sell it today you would earn a total of 25.00 from holding Integra Resources Corp or generate 28.41% 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. Sibanye Gold Ltd
Performance |
| Timeline |
| Integra Resources Corp |
| Sibanye Gold |
Integra Resources and Sibanye Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Sibanye Gold
The main advantage of trading using opposite Integra Resources and Sibanye Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Sibanye Gold 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 Sibanye Gold will offset losses from the drop in Sibanye Gold'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 |
| Sibanye Gold vs. AngloGold Ashanti plc | Sibanye Gold vs. Harmony Gold Mining | Sibanye Gold vs. Eldorado Gold Corp | Sibanye Gold vs. Kinross Gold |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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