Correlation Between Infinico Metals and SilverCrest Metals

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

Diversification Opportunities for Infinico Metals and SilverCrest Metals

-0.55

Correlation Coefficient

Infinico Metals  SilverCrest Metals

Excellent diversification

The 3 months correlation between Infinico and SilverCrest is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and SilverCrest Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverCrest Metals 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 SilverCrest Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverCrest Metals has no effect on the direction of Infinico Metals i.e., Infinico Metals and SilverCrest Metals go up and down completely randomly.

Pair Corralation between Infinico Metals and SilverCrest Metals

Assuming the 90 days trading horizon Infinico Metals Corp is expected to under-perform the SilverCrest Metals. In addition to that, Infinico Metals is 1.71 times more volatile than SilverCrest Metals. It trades about -0.08 of its total potential returns per unit of risk. SilverCrest Metals is currently generating about 0.12 per unit of volatility. If you would invest  1,118  in SilverCrest Metals on August 30, 2024 and sell it today you would earn a total of  314.00  from holding SilverCrest Metals or generate 28.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.65%
Values	Daily Returns

Infinico Metals Corp  vs.  SilverCrest Metals

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 December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

SilverCrest Metals

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SilverCrest Metals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, SilverCrest Metals displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infinico Metals and SilverCrest Metals

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

The idea behind Infinico Metals Corp and SilverCrest Metals 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.