Correlation Between Bald Eagle and First Majestic
Can any of the company-specific risk be diversified away by investing in both Bald Eagle 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 Bald Eagle and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bald Eagle Gold and First Majestic Silver, you can compare the effects of market volatilities on Bald Eagle 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 Bald Eagle with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bald Eagle and First Majestic.
Diversification Opportunities for Bald Eagle and First Majestic
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bald and First is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bald Eagle Gold 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 Bald Eagle 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 Bald Eagle Gold 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 Bald Eagle i.e., Bald Eagle and First Majestic go up and down completely randomly.
Pair Corralation between Bald Eagle and First Majestic
Assuming the 90 days horizon Bald Eagle Gold is expected to generate 1.84 times more return on investment than First Majestic. However, Bald Eagle is 1.84 times more volatile than First Majestic Silver. It trades about 0.21 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.29 per unit of risk. If you would invest 50.00 in Bald Eagle Gold on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Bald Eagle Gold or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bald Eagle Gold vs. First Majestic Silver
Performance |
| Timeline |
| Bald Eagle Gold |
| First Majestic Silver |
Bald Eagle and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bald Eagle and First Majestic
The main advantage of trading using opposite Bald Eagle and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bald Eagle 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.| Bald Eagle vs. Partners Value Investments | Bald Eagle vs. CNJ Capital Investments | Bald Eagle vs. Firan Technology Group | Bald Eagle vs. Computer Modelling Group |
| First Majestic vs. Slate Grocery REIT | First Majestic vs. Toronto Dominion Bank | First Majestic vs. Enduro Metals Corp | First Majestic vs. Intact Financial 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |