Correlation Between Integra Resources and Southern Silver
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Southern 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 Southern 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 Southern Silver Exploration, you can compare the effects of market volatilities on Integra Resources and Southern 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 Southern Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Southern Silver.
Diversification Opportunities for Integra Resources and Southern Silver
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integra and Southern is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Southern Silver Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Silver Expl 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 Southern Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Silver Expl has no effect on the direction of Integra Resources i.e., Integra Resources and Southern Silver go up and down completely randomly.
Pair Corralation between Integra Resources and Southern Silver
Given the investment horizon of 90 days Integra Resources Corp is expected to generate 0.61 times more return on investment than Southern Silver. However, Integra Resources Corp is 1.63 times less risky than Southern Silver. It trades about 0.02 of its potential returns per unit of risk. Southern Silver Exploration is currently generating about 0.0 per unit of risk. If you would invest 91.00 in Integra Resources Corp on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Integra Resources Corp or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Resources Corp vs. Southern Silver Exploration
Performance |
| Timeline |
| Integra Resources Corp |
| Southern Silver Expl |
Integra Resources and Southern Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Southern Silver
The main advantage of trading using opposite Integra Resources and Southern Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Southern 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 Southern Silver will offset losses from the drop in Southern Silver's long position.| Integra Resources vs. Triple Flag Precious | Integra Resources vs. Endeavour Silver Corp | Integra Resources vs. SilverCrest Metals | Integra Resources vs. Gatos Silver |
| Southern Silver vs. Star Royalties | Southern Silver vs. Defiance Silver Corp | Southern Silver vs. Diamond Fields Resources | Southern Silver 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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