Correlation Between Calian Technologies and First Majestic
Can any of the company-specific risk be diversified away by investing in both Calian Technologies 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 Calian Technologies and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and First Majestic Silver, you can compare the effects of market volatilities on Calian Technologies 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 Calian Technologies with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and First Majestic.
Diversification Opportunities for Calian Technologies and First Majestic
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calian and First is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies 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 Calian Technologies 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 Calian Technologies 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 Calian Technologies i.e., Calian Technologies and First Majestic go up and down completely randomly.
Pair Corralation between Calian Technologies and First Majestic
Assuming the 90 days trading horizon Calian Technologies is expected to generate 0.45 times more return on investment than First Majestic. However, Calian Technologies is 2.23 times less risky than First Majestic. It trades about 0.05 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.14 per unit of risk. If you would invest 4,814 in Calian Technologies on October 12, 2024 and sell it today you would earn a total of 56.00 from holding Calian Technologies or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calian Technologies vs. First Majestic Silver
Performance |
| Timeline |
| Calian Technologies |
| First Majestic Silver |
Calian Technologies and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and First Majestic
The main advantage of trading using opposite Calian Technologies and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies 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.| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
| First Majestic vs. Calian Technologies | First Majestic vs. Nano One Materials | First Majestic vs. Quorum Information Technologies | First Majestic vs. XXIX Metal 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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