Correlation Between First Majestic and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both First Majestic and Kinross Gold 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 Kinross Gold 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 Kinross Gold Corp, you can compare the effects of market volatilities on First Majestic and Kinross Gold 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 Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Kinross Gold.
Diversification Opportunities for First Majestic and Kinross Gold
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Kinross is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Kinross Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold Corp 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 Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold Corp has no effect on the direction of First Majestic i.e., First Majestic and Kinross Gold go up and down completely randomly.
Pair Corralation between First Majestic and Kinross Gold
Assuming the 90 days horizon First Majestic Silver is expected to under-perform the Kinross Gold. In addition to that, First Majestic is 1.52 times more volatile than Kinross Gold Corp. It trades about 0.0 of its total potential returns per unit of risk. Kinross Gold Corp is currently generating about 0.1 per unit of volatility. If you would invest 556.00 in Kinross Gold Corp on August 24, 2024 and sell it today you would earn a total of 871.00 from holding Kinross Gold Corp or generate 156.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. Kinross Gold Corp
Performance |
| Timeline |
| First Majestic Silver |
| Kinross Gold Corp |
First Majestic and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Kinross Gold
The main advantage of trading using opposite First Majestic and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Kinross Gold 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 Kinross Gold will offset losses from the drop in Kinross Gold's long position.| First Majestic vs. Reliq Health Technologies | First Majestic vs. Wilmington Capital Management | First Majestic vs. TUT Fitness Group | First Majestic vs. iSign Media Solutions |
| Kinross Gold vs. Barrick Gold Corp | Kinross Gold vs. Eldorado Gold Corp | Kinross Gold vs. IAMGold | Kinross Gold vs. Agnico Eagle Mines |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |