Correlation Between Integra Resources and Viscount Mining

Can any of the company-specific risk be diversified away by investing in both Integra Resources and Viscount Mining 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 Integra Resources and Viscount Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Integra Resources and Viscount Mining

0.21

Correlation Coefficient

Integra Resources  Viscount Mining

Modest diversification

The 3 months correlation between Integra and Viscount is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Viscount Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viscount Mining Corp and Integra Resources 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 Integra Resources Corp are associated (or correlated) with Viscount Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viscount Mining Corp has no effect on the direction of Integra Resources i.e., Integra Resources and Viscount Mining go up and down completely randomly.

Pair Corralation between Integra Resources and Viscount Mining

Given the investment horizon of 90 days Integra Resources is expected to generate 3.35 times less return on investment than Viscount Mining. But when comparing it to its historical volatility, Integra Resources Corp is 1.48 times less risky than Viscount Mining. It trades about 0.01 of its potential returns per unit of risk. Viscount Mining Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Viscount Mining Corp on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Viscount Mining Corp or generate 0.0% return on investment over 90 days.

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

Integra Resources Corp  vs.  Viscount Mining Corp

Integra Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integra Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Integra Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Viscount Mining Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Viscount Mining Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Viscount Mining may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Integra Resources and Viscount Mining

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

The idea behind Integra Resources Corp and Viscount Mining 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.