Correlation Between CANEX Metals and First Majestic
Can any of the company-specific risk be diversified away by investing in both CANEX Metals 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 CANEX Metals and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANEX Metals and First Majestic Silver, you can compare the effects of market volatilities on CANEX Metals 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 CANEX Metals with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANEX Metals and First Majestic.
Diversification Opportunities for CANEX Metals and First Majestic
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CANEX and First is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CANEX Metals 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 CANEX Metals 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 CANEX Metals 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 CANEX Metals i.e., CANEX Metals and First Majestic go up and down completely randomly.
Pair Corralation between CANEX Metals and First Majestic
Assuming the 90 days trading horizon CANEX Metals is expected to generate 2.8 times more return on investment than First Majestic. However, CANEX Metals is 2.8 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 0.05 per unit of risk. If you would invest 5.00 in CANEX Metals on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CANEX Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
CANEX Metals vs. First Majestic Silver
Performance |
| Timeline |
| CANEX Metals |
| First Majestic Silver |
CANEX Metals and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANEX Metals and First Majestic
The main advantage of trading using opposite CANEX Metals and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANEX Metals 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.| CANEX Metals vs. Magna Terra Minerals | CANEX Metals vs. Golden Pursuit Resources | CANEX Metals vs. Wildsky Resources | CANEX Metals vs. Inventus Mining 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |