Correlation Between Liberty Gold and Integra Resources
Can any of the company-specific risk be diversified away by investing in both Liberty Gold and Integra 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 Liberty Gold and Integra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Gold Corp and Integra Resources Corp, you can compare the effects of market volatilities on Liberty Gold and Integra 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 Liberty Gold with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Gold and Integra Resources.
Diversification Opportunities for Liberty Gold and Integra Resources
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Liberty and Integra is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Gold Corp and Integra Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Resources Corp and Liberty Gold 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 Liberty Gold Corp are associated (or correlated) with Integra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Resources Corp has no effect on the direction of Liberty Gold i.e., Liberty Gold and Integra Resources go up and down completely randomly.
Pair Corralation between Liberty Gold and Integra Resources
Assuming the 90 days trading horizon Liberty Gold is expected to generate 1.5 times less return on investment than Integra Resources. In addition to that, Liberty Gold is 1.16 times more volatile than Integra Resources Corp. It trades about 0.23 of its total potential returns per unit of risk. Integra Resources Corp is currently generating about 0.41 per unit of volatility. If you would invest 125.00 in Integra Resources Corp on November 9, 2024 and sell it today you would earn a total of 38.00 from holding Integra Resources Corp or generate 30.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Gold Corp vs. Integra Resources Corp
Performance |
| Timeline |
| Liberty Gold Corp |
| Integra Resources Corp |
Liberty Gold and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Gold and Integra Resources
The main advantage of trading using opposite Liberty Gold and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Gold position performs unexpectedly, Integra 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 Integra Resources will offset losses from the drop in Integra Resources' long position.| Liberty Gold vs. GoGold Resources | Liberty Gold vs. Maple Gold Mines | Liberty Gold vs. Aurion Resources | Liberty Gold vs. Minaurum Gold |
| Integra Resources vs. Liberty Gold Corp | Integra Resources vs. Rio2 | Integra Resources vs. Revival Gold | Integra Resources vs. O3 Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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