Correlation Between Integra Resources and Viscount Mining
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Viscount Mining 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 Viscount Mining 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 Viscount Mining Corp, you can compare the effects of market volatilities on Integra Resources and Viscount Mining 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 Viscount Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Viscount Mining.
Diversification Opportunities for Integra Resources and Viscount Mining
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integra and Viscount is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Viscount Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viscount Mining Corp 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 Viscount Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viscount Mining Corp has no effect on the direction of Integra Resources i.e., Integra Resources and Viscount Mining go up and down completely randomly.
Pair Corralation between Integra Resources and Viscount Mining
Given the investment horizon of 90 days Integra Resources is expected to generate 2.26 times less return on investment than Viscount Mining. But when comparing it to its historical volatility, Integra Resources Corp is 1.71 times less risky than Viscount Mining. It trades about 0.02 of its potential returns per unit of risk. Viscount Mining Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Viscount Mining Corp on September 2, 2024 and sell it today you would lose (5.00) from holding Viscount Mining Corp or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Resources Corp vs. Viscount Mining Corp
Performance |
| Timeline |
| Integra Resources Corp |
| Viscount Mining Corp |
Integra Resources and Viscount Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Viscount Mining
The main advantage of trading using opposite Integra Resources and Viscount Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Viscount Mining 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 Viscount Mining will offset losses from the drop in Viscount Mining'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 |
| Viscount Mining vs. Defiance Silver Corp | Viscount Mining vs. HUMANA INC | Viscount Mining vs. SCOR PK | Viscount Mining vs. Aquagold International |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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