Correlation Between Ultra Resources and Infinite Ore

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

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

Diversification Opportunities for Ultra Resources and Infinite Ore

-0.02

Correlation Coefficient

Ultra Resources  Infinite Ore

Good diversification

The 3 months correlation between Ultra and Infinite is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Resources and Infinite Ore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinite Ore Corp and Ultra 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 Ultra Resources are associated (or correlated) with Infinite Ore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinite Ore Corp has no effect on the direction of Ultra Resources i.e., Ultra Resources and Infinite Ore go up and down completely randomly.

Pair Corralation between Ultra Resources and Infinite Ore

Assuming the 90 days horizon Ultra Resources is expected to under-perform the Infinite Ore. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ultra Resources is 9.17 times less risky than Infinite Ore. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Infinite Ore Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1.50  in Infinite Ore Corp on May 5, 2025 and sell it today you would earn a total of  0.60  from holding Infinite Ore Corp or generate 40.0% return on investment over 90 days.

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

Ultra Resources  vs.  Infinite Ore Corp

Ultra Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ultra Resources 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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Infinite Ore Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Infinite Ore Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Infinite Ore reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ultra Resources and Infinite Ore

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

The idea behind Ultra Resources and Infinite Ore 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.