Correlation Between Kesselrun Resources and Infinico Metals
Can any of the company-specific risk be diversified away by investing in both Kesselrun Resources and Infinico Metals 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 Kesselrun Resources and Infinico Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kesselrun Resources and Infinico Metals Corp, you can compare the effects of market volatilities on Kesselrun Resources and Infinico Metals 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 Kesselrun Resources with a short position of Infinico Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesselrun Resources and Infinico Metals.
Diversification Opportunities for Kesselrun Resources and Infinico Metals
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kesselrun and Infinico is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kesselrun Resources and Infinico Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinico Metals Corp and Kesselrun 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 Kesselrun Resources are associated (or correlated) with Infinico Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinico Metals Corp has no effect on the direction of Kesselrun Resources i.e., Kesselrun Resources and Infinico Metals go up and down completely randomly.
Pair Corralation between Kesselrun Resources and Infinico Metals
Assuming the 90 days horizon Kesselrun Resources is expected to generate 1.27 times less return on investment than Infinico Metals. But when comparing it to its historical volatility, Kesselrun Resources is 1.82 times less risky than Infinico Metals. It trades about 0.13 of its potential returns per unit of risk. Infinico Metals Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Infinico Metals Corp on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Infinico Metals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kesselrun Resources vs. Infinico Metals Corp
Performance |
| Timeline |
| Kesselrun Resources |
| Infinico Metals Corp |
Kesselrun Resources and Infinico Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kesselrun Resources and Infinico Metals
The main advantage of trading using opposite Kesselrun Resources and Infinico Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesselrun Resources position performs unexpectedly, Infinico Metals 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 Infinico Metals will offset losses from the drop in Infinico Metals' long position.| Kesselrun Resources vs. Magnum Goldcorp | Kesselrun Resources vs. Lupaka Gold Corp | Kesselrun Resources vs. Black Widow Resources |
| Infinico Metals vs. NV Gold Corp | Infinico Metals vs. Prosper Gold Corp | Infinico Metals vs. Kesselrun Resources | Infinico Metals vs. iShares Canadian HYBrid |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |