Correlation Between Artemis Gold and First Mining
Can any of the company-specific risk be diversified away by investing in both Artemis Gold and First Mining 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 Artemis Gold and First Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Gold and First Mining Gold, you can compare the effects of market volatilities on Artemis Gold and First Mining 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 Artemis Gold with a short position of First Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Gold and First Mining.
Diversification Opportunities for Artemis Gold and First Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Artemis and First is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Gold and First Mining Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Mining Gold and Artemis Gold 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 Artemis Gold are associated (or correlated) with First Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Mining Gold has no effect on the direction of Artemis Gold i.e., Artemis Gold and First Mining go up and down completely randomly.
Pair Corralation between Artemis Gold and First Mining
Assuming the 90 days horizon Artemis Gold is expected to generate 0.9 times more return on investment than First Mining. However, Artemis Gold is 1.11 times less risky than First Mining. It trades about 0.06 of its potential returns per unit of risk. First Mining Gold is currently generating about -0.13 per unit of risk. If you would invest 1,006 in Artemis Gold on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Artemis Gold or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artemis Gold vs. First Mining Gold
Performance |
| Timeline |
| Artemis Gold |
| First Mining Gold |
Artemis Gold and First Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Gold and First Mining
The main advantage of trading using opposite Artemis Gold and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Gold position performs unexpectedly, First Mining 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 First Mining will offset losses from the drop in First Mining's long position.| Artemis Gold vs. Aurion Resources | Artemis Gold vs. Rio2 Limited | Artemis Gold vs. Palamina Corp | Artemis Gold vs. BTU Metals Corp |
| First Mining vs. Aurion Resources | First Mining vs. Orezone Gold Corp | First Mining vs. Rio2 Limited | First Mining vs. Norsemont 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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