Correlation Between 2028 Investment and Infinico Metals

Can any of the company-specific risk be diversified away by investing in both 2028 Investment 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 2028 Investment and Infinico Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 2028 Investment Grade and Infinico Metals Corp, you can compare the effects of market volatilities on 2028 Investment 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 2028 Investment with a short position of Infinico Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2028 Investment and Infinico Metals.

Diversification Opportunities for 2028 Investment and Infinico Metals

0.3

Correlation Coefficient

2028 Investment  Infinico Metals

Weak diversification

The 3 months correlation between 2028 and Infinico is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding 2028 Investment Grade 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 2028 Investment 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 2028 Investment Grade 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 2028 Investment i.e., 2028 Investment and Infinico Metals go up and down completely randomly.

Pair Corralation between 2028 Investment and Infinico Metals

Assuming the 90 days trading horizon 2028 Investment Grade is expected to generate 0.4 times more return on investment than Infinico Metals. However, 2028 Investment Grade is 2.48 times less risky than Infinico Metals. It trades about 0.02 of its potential returns per unit of risk. Infinico Metals Corp is currently generating about -0.05 per unit of risk. If you would invest  1,031  in 2028 Investment Grade on October 5, 2024 and sell it today you would lose (16.00) from holding 2028 Investment Grade or give up 1.55% of portfolio value over 90 days.

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

2028 Investment Grade  vs.  Infinico Metals Corp

2028 Investment Grade

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 2028 Investment Grade are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, 2028 Investment is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Infinico Metals Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with 2028 Investment and Infinico Metals

The main advantage of trading using opposite 2028 Investment and Infinico Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2028 Investment 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.

The idea behind 2028 Investment Grade and Infinico 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.