Correlation Between Integra Resources and Solaris Resources
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Solaris Resources 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 Solaris Resources 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 Solaris Resources, you can compare the effects of market volatilities on Integra Resources and Solaris Resources 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 Solaris Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Solaris Resources.
Diversification Opportunities for Integra Resources and Solaris Resources
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integra and Solaris is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Solaris Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solaris Resources 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 Solaris Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solaris Resources has no effect on the direction of Integra Resources i.e., Integra Resources and Solaris Resources go up and down completely randomly.
Pair Corralation between Integra Resources and Solaris Resources
Given the investment horizon of 90 days Integra Resources Corp is expected to under-perform the Solaris Resources. But the stock apears to be less risky and, when comparing its historical volatility, Integra Resources Corp is 1.77 times less risky than Solaris Resources. The stock trades about -0.27 of its potential returns per unit of risk. The Solaris Resources is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 231.00 in Solaris Resources on October 22, 2024 and sell it today you would earn a total of 128.00 from holding Solaris Resources or generate 55.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Resources Corp vs. Solaris Resources
Performance |
| Timeline |
| Integra Resources Corp |
| Solaris Resources |
Integra Resources and Solaris Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Solaris Resources
The main advantage of trading using opposite Integra Resources and Solaris Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Solaris Resources 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 Solaris Resources will offset losses from the drop in Solaris Resources' 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 |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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