Correlation Between IShares Canadian and Infinico Metals
Can any of the company-specific risk be diversified away by investing in both IShares Canadian 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 IShares Canadian and Infinico Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Canadian HYBrid and Infinico Metals Corp, you can compare the effects of market volatilities on IShares Canadian 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 IShares Canadian with a short position of Infinico Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Infinico Metals.
Diversification Opportunities for IShares Canadian and Infinico Metals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Infinico is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid 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 IShares Canadian 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 iShares Canadian HYBrid 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 IShares Canadian i.e., IShares Canadian and Infinico Metals go up and down completely randomly.
Pair Corralation between IShares Canadian and Infinico Metals
Assuming the 90 days trading horizon IShares Canadian is expected to generate 584.8 times less return on investment than Infinico Metals. But when comparing it to its historical volatility, iShares Canadian HYBrid is 74.19 times less risky than Infinico Metals. It trades about 0.01 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Infinico Metals Corp
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Infinico Metals Corp |
IShares Canadian and Infinico Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Infinico Metals
The main advantage of trading using opposite IShares Canadian and Infinico Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian 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.| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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