Correlation Between Filo Mining and Intrepid Metals

Can any of the company-specific risk be diversified away by investing in both Filo Mining and Intrepid 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 Filo Mining and Intrepid Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Filo Mining Corp and Intrepid Metals Corp, you can compare the effects of market volatilities on Filo Mining and Intrepid 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 Filo Mining with a short position of Intrepid Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Intrepid Metals.

Diversification Opportunities for Filo Mining and Intrepid Metals

-0.73

Correlation Coefficient

Filo Mining  Intrepid Metals

Pay attention - limited upside

The 3 months correlation between Filo and Intrepid is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Intrepid Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Metals Corp and Filo Mining 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 Filo Mining Corp are associated (or correlated) with Intrepid Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Metals Corp has no effect on the direction of Filo Mining i.e., Filo Mining and Intrepid Metals go up and down completely randomly.

Pair Corralation between Filo Mining and Intrepid Metals

Assuming the 90 days horizon Filo Mining Corp is expected to under-perform the Intrepid Metals. But the otc stock apears to be less risky and, when comparing its historical volatility, Filo Mining Corp is 7.13 times less risky than Intrepid Metals. The otc stock trades about -0.08 of its potential returns per unit of risk. The Intrepid Metals Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  28.00  in Intrepid Metals Corp on December 29, 2024 and sell it today you would earn a total of  6.00  from holding Intrepid Metals Corp or generate 21.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	22.95%
Values	Daily Returns

Filo Mining Corp  vs.  Intrepid Metals Corp

Filo Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Filo Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Filo Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Intrepid Metals Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intrepid Metals Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Intrepid Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Filo Mining and Intrepid Metals

The main advantage of trading using opposite Filo Mining and Intrepid Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Intrepid 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 Intrepid Metals will offset losses from the drop in Intrepid Metals' long position.

The idea behind Filo Mining Corp and Intrepid Metals Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.