Correlation Between I-80 Gold and Adamera Minerals

Can any of the company-specific risk be diversified away by investing in both I-80 Gold and Adamera Minerals 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 I-80 Gold and Adamera Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between i 80 Gold Corp and Adamera Minerals Corp, you can compare the effects of market volatilities on I-80 Gold and Adamera Minerals 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 I-80 Gold with a short position of Adamera Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of I-80 Gold and Adamera Minerals.

Diversification Opportunities for I-80 Gold and Adamera Minerals

-0.62

Correlation Coefficient

I-80 Gold  Adamera Minerals

Excellent diversification

The 3 months correlation between I-80 and Adamera is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding i 80 Gold Corp and Adamera Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adamera Minerals Corp and I-80 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 i 80 Gold Corp are associated (or correlated) with Adamera Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adamera Minerals Corp has no effect on the direction of I-80 Gold i.e., I-80 Gold and Adamera Minerals go up and down completely randomly.

Pair Corralation between I-80 Gold and Adamera Minerals

Assuming the 90 days trading horizon i 80 Gold Corp is expected to generate 0.69 times more return on investment than Adamera Minerals. However, i 80 Gold Corp is 1.46 times less risky than Adamera Minerals. It trades about 0.1 of its potential returns per unit of risk. Adamera Minerals Corp is currently generating about -0.08 per unit of risk. If you would invest  69.00  in i 80 Gold Corp on December 28, 2024 and sell it today you would earn a total of  21.00  from holding i 80 Gold Corp or generate 30.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

i 80 Gold Corp  vs.  Adamera Minerals Corp

i 80 Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in i 80 Gold Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, I-80 Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Adamera Minerals Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adamera Minerals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with I-80 Gold and Adamera Minerals

The main advantage of trading using opposite I-80 Gold and Adamera Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I-80 Gold position performs unexpectedly, Adamera Minerals 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 Adamera Minerals will offset losses from the drop in Adamera Minerals' long position.

The idea behind i 80 Gold Corp and Adamera Minerals 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.