Correlation Between First Majestic and Teuton Resources
Can any of the company-specific risk be diversified away by investing in both First Majestic and Teuton 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 Teuton 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 Teuton Resources Corp, you can compare the effects of market volatilities on First Majestic and Teuton 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 Teuton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Teuton Resources.
Diversification Opportunities for First Majestic and Teuton Resources
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Teuton is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Teuton Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teuton Resources 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 Teuton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teuton Resources Corp has no effect on the direction of First Majestic i.e., First Majestic and Teuton Resources go up and down completely randomly.
Pair Corralation between First Majestic and Teuton Resources
Assuming the 90 days horizon First Majestic Silver is expected to under-perform the Teuton Resources. But the stock apears to be less risky and, when comparing its historical volatility, First Majestic Silver is 1.06 times less risky than Teuton Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Teuton Resources Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 107.00 in Teuton Resources Corp on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Teuton Resources Corp or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. Teuton Resources Corp
Performance |
| Timeline |
| First Majestic Silver |
| Teuton Resources Corp |
First Majestic and Teuton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Teuton Resources
The main advantage of trading using opposite First Majestic and Teuton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Teuton 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 Teuton Resources will offset losses from the drop in Teuton Resources' long position.| First Majestic vs. Talon Metals Corp | First Majestic vs. Champion Gaming Group | First Majestic vs. SalesforceCom CDR | First Majestic vs. Gfl Environmental Holdings |
| Teuton Resources vs. First Majestic Silver | Teuton Resources vs. Ivanhoe Energy | Teuton Resources vs. Orezone Gold Corp | Teuton Resources vs. Faraday Copper 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |