Correlation Between Liberty Gold and Integra Resources

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

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

Diversification Opportunities for Liberty Gold and Integra Resources

0.53

Correlation Coefficient

Liberty Gold  Integra Resources

Very weak diversification

The 3 months correlation between Liberty and Integra is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Gold Corp and Integra Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Resources Corp and Liberty Gold 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 Liberty Gold Corp are associated (or correlated) with Integra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Resources Corp has no effect on the direction of Liberty Gold i.e., Liberty Gold and Integra Resources go up and down completely randomly.

Pair Corralation between Liberty Gold and Integra Resources

Assuming the 90 days trading horizon Liberty Gold Corp is expected to under-perform the Integra Resources. In addition to that, Liberty Gold is 1.33 times more volatile than Integra Resources Corp. It trades about -0.12 of its total potential returns per unit of risk. Integra Resources Corp is currently generating about 0.01 per unit of volatility. If you would invest  130.00  in Integra Resources Corp on September 22, 2024 and sell it today you would lose (1.00) from holding Integra Resources Corp or give up 0.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Liberty Gold Corp  vs.  Integra Resources Corp

Liberty Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Liberty Gold 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 fundamental 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.

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. In spite of fairly stable basic indicators, Integra Resources is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Liberty Gold and Integra Resources

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

The idea behind Liberty Gold Corp and Integra Resources 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.