Correlation Between South Pacific and Infinico Metals
Can any of the company-specific risk be diversified away by investing in both South Pacific 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 South Pacific and Infinico Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Pacific Metals and Infinico Metals Corp, you can compare the effects of market volatilities on South Pacific 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 South Pacific with a short position of Infinico Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Pacific and Infinico Metals.
Diversification Opportunities for South Pacific and Infinico Metals
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between South and Infinico is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding South Pacific Metals 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 South Pacific 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 South Pacific Metals 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 South Pacific i.e., South Pacific and Infinico Metals go up and down completely randomly.
Pair Corralation between South Pacific and Infinico Metals
Assuming the 90 days trading horizon South Pacific Metals is expected to under-perform the Infinico Metals. But the stock apears to be less risky and, when comparing its historical volatility, South Pacific Metals is 5.54 times less risky than Infinico Metals. The stock trades about -0.21 of its potential returns per unit of risk. The Infinico Metals Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Infinico Metals Corp on October 11, 2024 and sell it today you would lose (1.00) from holding Infinico Metals Corp or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
South Pacific Metals vs. Infinico Metals Corp
Performance |
| Timeline |
| South Pacific Metals |
| Infinico Metals Corp |
South Pacific and Infinico Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Pacific and Infinico Metals
The main advantage of trading using opposite South Pacific and Infinico Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Pacific 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.| South Pacific vs. Canadian General Investments | South Pacific vs. Champion Gaming Group | South Pacific vs. Atrium Mortgage Investment | South Pacific vs. Contagious Gaming |
| Infinico Metals vs. Globex Mining Enterprises | Infinico Metals vs. NeXGold Mining Corp | Infinico Metals vs. South Pacific Metals | Infinico Metals vs. Metalero Mining 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |