Correlation Between Infinico Metals and NorthIsle Copper

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

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

Diversification Opportunities for Infinico Metals and NorthIsle Copper

0.63

Correlation Coefficient

Infinico Metals  NorthIsle Copper

Poor diversification

The 3 months correlation between Infinico and NorthIsle is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and NorthIsle Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NorthIsle Copper and Infinico Metals 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 Infinico Metals Corp are associated (or correlated) with NorthIsle Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NorthIsle Copper has no effect on the direction of Infinico Metals i.e., Infinico Metals and NorthIsle Copper go up and down completely randomly.

Pair Corralation between Infinico Metals and NorthIsle Copper

Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the NorthIsle Copper. In addition to that, Infinico Metals is 2.04 times more volatile than NorthIsle Copper and. It trades about -0.32 of its total potential returns per unit of risk. NorthIsle Copper and is currently generating about -0.09 per unit of volatility. If you would invest  44.00  in NorthIsle Copper and on September 30, 2024 and sell it today you would lose (3.00) from holding NorthIsle Copper and or give up 6.82% of portfolio value over 90 days.

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

Infinico Metals Corp  vs.  NorthIsle Copper and

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 abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

NorthIsle Copper

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NorthIsle Copper and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Infinico Metals and NorthIsle Copper

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

The idea behind Infinico Metals Corp and NorthIsle Copper and 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.