Correlation Between Stillwater Critical and Integra Resources

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

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

Diversification Opportunities for Stillwater Critical and Integra Resources

0.79

Correlation Coefficient

Stillwater Critical  Integra Resources

Poor diversification

The 3 months correlation between Stillwater and Integra is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Stillwater Critical Minerals 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 Stillwater Critical 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 Stillwater Critical Minerals 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 Stillwater Critical i.e., Stillwater Critical and Integra Resources go up and down completely randomly.

Pair Corralation between Stillwater Critical and Integra Resources

Assuming the 90 days horizon Stillwater Critical Minerals is expected to under-perform the Integra Resources. In addition to that, Stillwater Critical is 2.07 times more volatile than Integra Resources Corp. It trades about -0.16 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  127.00  in Integra Resources Corp on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Integra Resources Corp or generate 0.0% return on investment over 90 days.

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

Stillwater Critical Minerals  vs.  Integra Resources Corp

Stillwater Critical

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stillwater Critical Minerals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Stillwater Critical showed solid returns over the last few months and may actually be approaching a breakup point.

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 Stillwater Critical and Integra Resources

The main advantage of trading using opposite Stillwater Critical and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillwater Critical 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 Stillwater Critical Minerals 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.