Correlation Between First Majestic and Jewett Cameron
Can any of the company-specific risk be diversified away by investing in both First Majestic and Jewett Cameron 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 Jewett Cameron 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 Jewett Cameron Trading, you can compare the effects of market volatilities on First Majestic and Jewett Cameron 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 Jewett Cameron. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Jewett Cameron.
Diversification Opportunities for First Majestic and Jewett Cameron
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Jewett is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Jewett Cameron Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jewett Cameron Trading 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 Jewett Cameron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jewett Cameron Trading has no effect on the direction of First Majestic i.e., First Majestic and Jewett Cameron go up and down completely randomly.
Pair Corralation between First Majestic and Jewett Cameron
Allowing for the 90-day total investment horizon First Majestic Silver is expected to under-perform the Jewett Cameron. In addition to that, First Majestic is 1.23 times more volatile than Jewett Cameron Trading. It trades about -0.32 of its total potential returns per unit of risk. Jewett Cameron Trading is currently generating about 0.01 per unit of volatility. If you would invest 435.00 in Jewett Cameron Trading on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Jewett Cameron Trading or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. Jewett Cameron Trading
Performance |
| Timeline |
| First Majestic Silver |
| Jewett Cameron Trading |
First Majestic and Jewett Cameron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Jewett Cameron
The main advantage of trading using opposite First Majestic and Jewett Cameron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Jewett Cameron 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 Jewett Cameron will offset losses from the drop in Jewett Cameron's long position.| First Majestic vs. Aya Gold Silver | First Majestic vs. Silvercorp Metals | First Majestic vs. Discovery Metals Corp | First Majestic vs. Bald Eagle Gold |
| Jewett Cameron vs. Simpson Manufacturing | Jewett Cameron vs. West Fraser Timber | Jewett Cameron vs. Nature Wood Group | Jewett Cameron vs. Ufp Industries |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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