Correlation Between First Majestic and IMetal Resources
Can any of the company-specific risk be diversified away by investing in both First Majestic and IMetal 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 First Majestic and IMetal Resources 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 iMetal Resources, you can compare the effects of market volatilities on First Majestic and IMetal 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 First Majestic with a short position of IMetal Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and IMetal Resources.
Diversification Opportunities for First Majestic and IMetal Resources
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and IMetal is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and iMetal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iMetal Resources 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 IMetal Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iMetal Resources has no effect on the direction of First Majestic i.e., First Majestic and IMetal Resources go up and down completely randomly.
Pair Corralation between First Majestic and IMetal Resources
Assuming the 90 days horizon First Majestic Silver is expected to under-perform the IMetal Resources. In addition to that, First Majestic is 1.06 times more volatile than iMetal Resources. It trades about -0.35 of its total potential returns per unit of risk. iMetal Resources is currently generating about -0.24 per unit of volatility. If you would invest 22.00 in iMetal Resources on August 27, 2024 and sell it today you would lose (3.00) from holding iMetal Resources or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. iMetal Resources
Performance |
| Timeline |
| First Majestic Silver |
| iMetal Resources |
First Majestic and IMetal Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and IMetal Resources
The main advantage of trading using opposite First Majestic and IMetal Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, IMetal 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 IMetal Resources will offset losses from the drop in IMetal Resources' long position.| First Majestic vs. Quisitive Technology Solutions | First Majestic vs. Canso Select Opportunities | First Majestic vs. Canadian General Investments | First Majestic vs. Sparx Technology |
| IMetal Resources vs. First Majestic Silver | IMetal Resources vs. Ivanhoe Energy | IMetal Resources vs. Orezone Gold Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |