Correlation Between First Majestic and C3 Metals
Can any of the company-specific risk be diversified away by investing in both First Majestic and C3 Metals 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 First Majestic and C3 Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Majestic Silver and C3 Metals, you can compare the effects of market volatilities on First Majestic and C3 Metals 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 First Majestic with a short position of C3 Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and C3 Metals.
Diversification Opportunities for First Majestic and C3 Metals
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and CCCM is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and C3 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3 Metals and First Majestic 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 First Majestic Silver are associated (or correlated) with C3 Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3 Metals has no effect on the direction of First Majestic i.e., First Majestic and C3 Metals go up and down completely randomly.
Pair Corralation between First Majestic and C3 Metals
Assuming the 90 days horizon First Majestic Silver is expected to generate 0.6 times more return on investment than C3 Metals. However, First Majestic Silver is 1.66 times less risky than C3 Metals. It trades about 0.0 of its potential returns per unit of risk. C3 Metals is currently generating about -0.01 per unit of risk. If you would invest 1,152 in First Majestic Silver on September 5, 2024 and sell it today you would lose (260.00) from holding First Majestic Silver or give up 22.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. C3 Metals
Performance |
| Timeline |
| First Majestic Silver |
| C3 Metals |
First Majestic and C3 Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and C3 Metals
The main advantage of trading using opposite First Majestic and C3 Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, C3 Metals 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 C3 Metals will offset losses from the drop in C3 Metals' long position.| First Majestic vs. Reliq Health Technologies | First Majestic vs. NeuPath Health | First Majestic vs. Bausch Health Companies | First Majestic vs. TUT Fitness Group |
| C3 Metals vs. Surge Copper Corp | C3 Metals vs. Northwest Copper Corp | C3 Metals vs. QC Copper and | C3 Metals vs. Dore Copper Mining |
Check out your portfolio center.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 Stocks Directory module to find actively traded stocks across global markets.
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