Correlation Between Integra Resources and Rio2

Can any of the company-specific risk be diversified away by investing in both Integra Resources and Rio2 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 Integra Resources and Rio2 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Integra Resources Corp and Rio2, you can compare the effects of market volatilities on Integra Resources and Rio2 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 Integra Resources with a short position of Rio2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Rio2.

Diversification Opportunities for Integra Resources and Rio2

-0.66

Correlation Coefficient

Integra Resources  Rio2

Excellent diversification

The 3 months correlation between Integra and Rio2 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Rio2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rio2 and Integra Resources 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 Integra Resources Corp are associated (or correlated) with Rio2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rio2 has no effect on the direction of Integra Resources i.e., Integra Resources and Rio2 go up and down completely randomly.

Pair Corralation between Integra Resources and Rio2

Assuming the 90 days horizon Integra Resources Corp is expected to under-perform the Rio2. In addition to that, Integra Resources is 1.04 times more volatile than Rio2. It trades about -0.03 of its total potential returns per unit of risk. Rio2 is currently generating about 0.2 per unit of volatility. If you would invest  101.00  in Rio2 on May 3, 2025 and sell it today you would earn a total of  49.00  from holding Rio2 or generate 48.51% return on investment over 90 days.

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

Integra Resources Corp  vs.  Rio2

Integra Resources Corp

Risk-Adjusted Performance

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 latest fragile performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Rio2

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rio2 are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Rio2 showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integra Resources and Rio2

The main advantage of trading using opposite Integra Resources and Rio2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Rio2 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 Rio2 will offset losses from the drop in Rio2's long position.

The idea behind Integra Resources Corp and Rio2 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.