Correlation Between Chemours and First Majestic
Can any of the company-specific risk be diversified away by investing in both Chemours 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 Chemours and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and First Majestic Silver, you can compare the effects of market volatilities on Chemours 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 Chemours with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and First Majestic.
Diversification Opportunities for Chemours and First Majestic
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chemours and First is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co 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 Chemours 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 Chemours Co 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 Chemours i.e., Chemours and First Majestic go up and down completely randomly.
Pair Corralation between Chemours and First Majestic
Allowing for the 90-day total investment horizon Chemours Co is expected to generate 0.93 times more return on investment than First Majestic. However, Chemours Co is 1.08 times less risky than First Majestic. It trades about 0.0 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.0 per unit of risk. If you would invest 2,998 in Chemours Co on August 28, 2024 and sell it today you would lose (804.00) from holding Chemours Co or give up 26.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. First Majestic Silver
Performance |
| Timeline |
| Chemours |
| First Majestic Silver |
Chemours and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and First Majestic
The main advantage of trading using opposite Chemours and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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.| Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide | Chemours vs. LyondellBasell Industries NV |
| First Majestic vs. Aya Gold Silver | First Majestic vs. Silvercorp Metals | First Majestic vs. Discovery Metals Corp | First Majestic vs. Bald Eagle Gold |
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 CEOs Directory module to screen CEOs from public companies around the world.
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