Correlation Between International Tower and Matador Mining
Can any of the company-specific risk be diversified away by investing in both International Tower and Matador 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 International Tower and Matador Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Tower Hill and Matador Mining Limited, you can compare the effects of market volatilities on International Tower and Matador 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 International Tower with a short position of Matador Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Tower and Matador Mining.
Diversification Opportunities for International Tower and Matador Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Matador is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Tower Hill and Matador Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matador Mining and International Tower 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 International Tower Hill are associated (or correlated) with Matador Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matador Mining has no effect on the direction of International Tower i.e., International Tower and Matador Mining go up and down completely randomly.
Pair Corralation between International Tower and Matador Mining
If you would invest 44.00 in International Tower Hill on December 30, 2024 and sell it today you would earn a total of 21.00 from holding International Tower Hill or generate 47.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
International Tower Hill vs. Matador Mining Limited
Performance |
Timeline |
International Tower Hill |
Matador Mining |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
International Tower and Matador Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with International Tower and Matador Mining
The main advantage of trading using opposite International Tower and Matador Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Tower position performs unexpectedly, Matador 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 Matador Mining will offset losses from the drop in Matador Mining's long position.International Tower vs. Vista Gold | International Tower vs. Paramount Gold Nevada | International Tower vs. Tanzanian Royalty Exploration |
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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.
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