Correlation Between I 80 and International Tower

Can any of the company-specific risk be diversified away by investing in both I 80 and International Tower 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 and International Tower 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 International Tower Hill, you can compare the effects of market volatilities on I 80 and International Tower 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 with a short position of International Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and International Tower.

Diversification Opportunities for I 80 and International Tower

0.17

Correlation Coefficient

I 80  International Tower

Average diversification

The 3 months correlation between IAUX and International is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and International Tower Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Tower Hill and I 80 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 International Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Tower Hill has no effect on the direction of I 80 i.e., I 80 and International Tower go up and down completely randomly.

Pair Corralation between I 80 and International Tower

Given the investment horizon of 90 days I 80 Gold Corp is expected to generate 1.27 times more return on investment than International Tower. However, I 80 is 1.27 times more volatile than International Tower Hill. It trades about 0.27 of its potential returns per unit of risk. International Tower Hill is currently generating about 0.04 per unit of risk. If you would invest  56.00  in I 80 Gold Corp on December 4, 2024 and sell it today you would earn a total of  16.00  from holding I 80 Gold Corp or generate 28.57% return on investment over 90 days.

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

I 80 Gold Corp  vs.  International Tower Hill

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 fairly fragile basic indicators, I 80 showed solid returns over the last few months and may actually be approaching a breakup point.

International Tower Hill

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in International Tower Hill are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical indicators, International Tower is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with I 80 and International Tower

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

The idea behind I 80 Gold Corp and International Tower Hill 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.