Correlation Between NYSE Composite and Integra Resources
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Integra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Integra Resources Corp, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Integra Resources.
Diversification Opportunities for NYSE Composite and Integra Resources
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and Integra is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Integra Resources go up and down completely randomly.
Pair Corralation between NYSE Composite and Integra Resources
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.18 times more return on investment than Integra Resources. However, NYSE Composite is 5.42 times less risky than Integra Resources. It trades about 0.41 of its potential returns per unit of risk. Integra Resources Corp is currently generating about -0.24 per unit of risk. If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Integra Resources Corp
Performance |
| Timeline |
NYSE Composite and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Integra Resources Corp
Pair trading matchups for Integra Resources
Pair Trading with NYSE Composite and Integra Resources
The main advantage of trading using opposite NYSE Composite and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Integra Resources vs. Silver Tiger Metals | Integra Resources vs. Defiance Silver Corp | Integra Resources vs. Summa Silver Corp | Integra Resources vs. AbraSilver Resource Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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