Correlation Between Arizona Gold and First Majestic
Can any of the company-specific risk be diversified away by investing in both Arizona Gold and First Majestic 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 Arizona Gold and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arizona Gold Silver and First Majestic Silver, you can compare the effects of market volatilities on Arizona Gold and First Majestic 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 Arizona Gold with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arizona Gold and First Majestic.
Diversification Opportunities for Arizona Gold and First Majestic
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arizona and First is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Arizona Gold Silver and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver and Arizona 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 Arizona Gold Silver are associated (or correlated) with First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of Arizona Gold i.e., Arizona Gold and First Majestic go up and down completely randomly.
Pair Corralation between Arizona Gold and First Majestic
Assuming the 90 days horizon Arizona Gold Silver is expected to generate 1.13 times more return on investment than First Majestic. However, Arizona Gold is 1.13 times more volatile than First Majestic Silver. It trades about -0.05 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.3 per unit of risk. If you would invest 45.00 in Arizona Gold Silver on August 29, 2024 and sell it today you would lose (2.00) from holding Arizona Gold Silver or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arizona Gold Silver vs. First Majestic Silver
Performance |
| Timeline |
| Arizona Gold Silver |
| First Majestic Silver |
Arizona Gold and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arizona Gold and First Majestic
The main advantage of trading using opposite Arizona Gold and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arizona Gold position performs unexpectedly, First Majestic 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 Majestic will offset losses from the drop in First Majestic's long position.| Arizona Gold vs. First Majestic Silver | Arizona Gold vs. Ivanhoe Energy | Arizona Gold vs. Orezone Gold Corp | Arizona Gold vs. Faraday Copper Corp |
| First Majestic vs. Talon Metals Corp | First Majestic vs. Champion Gaming Group | First Majestic vs. SalesforceCom CDR | First Majestic vs. Gfl Environmental Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |