Correlation Between Infinico Metals and Taseko Mines

Can any of the company-specific risk be diversified away by investing in both Infinico Metals and Taseko Mines 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 Taseko Mines 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 Taseko Mines, you can compare the effects of market volatilities on Infinico Metals and Taseko Mines 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 Taseko Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinico Metals and Taseko Mines.

Diversification Opportunities for Infinico Metals and Taseko Mines

0.76

Correlation Coefficient

Infinico Metals  Taseko Mines

Poor diversification

The 3 months correlation between Infinico and Taseko is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and Taseko Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taseko Mines 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 Taseko Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taseko Mines has no effect on the direction of Infinico Metals i.e., Infinico Metals and Taseko Mines go up and down completely randomly.

Pair Corralation between Infinico Metals and Taseko Mines

Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the Taseko Mines. In addition to that, Infinico Metals is 2.73 times more volatile than Taseko Mines. It trades about -0.07 of its total potential returns per unit of risk. Taseko Mines is currently generating about -0.02 per unit of volatility. If you would invest  333.00  in Taseko Mines on September 28, 2024 and sell it today you would lose (46.00) from holding Taseko Mines or give up 13.81% 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.  Taseko Mines

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.

Taseko Mines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Taseko Mines 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 basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Infinico Metals and Taseko Mines

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

The idea behind Infinico Metals Corp and Taseko Mines 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.