Correlation Between Infinico Metals and First Majestic

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

Diversification Opportunities for Infinico Metals and First Majestic

-0.42

Correlation Coefficient

Infinico Metals  First Majestic

Very good diversification

The 3 months correlation between Infinico and First is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Infinico Metals Corp and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver 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 First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of Infinico Metals i.e., Infinico Metals and First Majestic go up and down completely randomly.

Pair Corralation between Infinico Metals and First Majestic

Assuming the 90 days trading horizon Infinico Metals Corp is expected to generate 12.97 times more return on investment than First Majestic. However, Infinico Metals is 12.97 times more volatile than First Majestic Silver. It trades about 0.16 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.01 per unit of risk. If you would invest  1.00  in Infinico Metals Corp on April 19, 2025 and sell it today you would earn a total of  0.00  from holding Infinico Metals Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	68.18%
Values	Daily Returns

Infinico Metals Corp  vs.  First Majestic Silver

Infinico Metals Corp

Risk-Adjusted Performance

Good

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 fairly unfluctuating technical and fundamental indicators, Infinico Metals showed solid returns over the last few months and may actually be approaching a breakup point.

First Majestic Silver

Risk-Adjusted Performance

OK

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

Pair Trading with Infinico Metals and First Majestic

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

The idea behind Infinico Metals Corp and First Majestic Silver 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.