Correlation Between Summa Silver and Integra Resources

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

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

Diversification Opportunities for Summa Silver and Integra Resources

0.25

Correlation Coefficient

Summa Silver  Integra Resources

Modest diversification

The 3 months correlation between Summa and Integra is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver 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 Summa Silver 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 Summa Silver 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 Summa Silver i.e., Summa Silver and Integra Resources go up and down completely randomly.

Pair Corralation between Summa Silver and Integra Resources

Assuming the 90 days horizon Summa Silver Corp is expected to under-perform the Integra Resources. In addition to that, Summa Silver is 1.27 times more volatile than Integra Resources Corp. It trades about -0.07 of its total potential returns per unit of risk. Integra Resources Corp is currently generating about 0.03 per unit of volatility. If you would invest  91.00  in Integra Resources Corp on September 2, 2024 and sell it today you would earn a total of  2.00  from holding Integra Resources Corp or generate 2.2% return on investment over 90 days.

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

Summa Silver Corp  vs.  Integra Resources Corp

Summa Silver Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Summa Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Integra Resources Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integra Resources Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Summa Silver and Integra Resources

The main advantage of trading using opposite Summa Silver and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver 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 Summa Silver 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.