Correlation Between First American and Spey Resources
Can any of the company-specific risk be diversified away by investing in both First American and Spey Resources 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 First American and Spey Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Silver and Spey Resources Corp, you can compare the effects of market volatilities on First American and Spey Resources 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 First American with a short position of Spey Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Spey Resources.
Diversification Opportunities for First American and Spey Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Spey is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First American Silver and Spey Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spey Resources Corp and First American 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 First American Silver are associated (or correlated) with Spey Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spey Resources Corp has no effect on the direction of First American i.e., First American and Spey Resources go up and down completely randomly.
Pair Corralation between First American and Spey Resources
Given the investment horizon of 90 days First American is expected to generate 1.25 times less return on investment than Spey Resources. In addition to that, First American is 1.56 times more volatile than Spey Resources Corp. It trades about 0.05 of its total potential returns per unit of risk. Spey Resources Corp is currently generating about 0.09 per unit of volatility. If you would invest 73.00 in Spey Resources Corp on September 12, 2024 and sell it today you would lose (60.00) from holding Spey Resources Corp or give up 82.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
First American Silver vs. Spey Resources Corp
Performance |
| Timeline |
| First American Silver |
| Spey Resources Corp |
First American and Spey Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Spey Resources
The main advantage of trading using opposite First American and Spey Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, Spey Resources 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 Spey Resources will offset losses from the drop in Spey Resources' long position.| First American vs. Qubec Nickel Corp | First American vs. IGO Limited | First American vs. Focus Graphite | First American vs. Mineral Res |
| Spey Resources vs. Grid Metals Corp | Spey Resources vs. POWR Lithium Corp | Spey Resources vs. First American Silver | Spey Resources vs. IGO Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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