Correlation Between Camino Minerals and First Majestic
Can any of the company-specific risk be diversified away by investing in both Camino Minerals 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 Camino Minerals and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camino Minerals and First Majestic Silver, you can compare the effects of market volatilities on Camino Minerals 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 Camino Minerals with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camino Minerals and First Majestic.
Diversification Opportunities for Camino Minerals and First Majestic
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Camino and First is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Camino Minerals 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 Camino Minerals 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 Camino Minerals 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 Camino Minerals i.e., Camino Minerals and First Majestic go up and down completely randomly.
Pair Corralation between Camino Minerals and First Majestic
Assuming the 90 days horizon Camino Minerals is expected to generate 2.67 times less return on investment than First Majestic. In addition to that, Camino Minerals is 1.47 times more volatile than First Majestic Silver. It trades about 0.03 of its total potential returns per unit of risk. First Majestic Silver is currently generating about 0.1 per unit of volatility. If you would invest 785.00 in First Majestic Silver on September 12, 2024 and sell it today you would earn a total of 161.00 from holding First Majestic Silver or generate 20.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Camino Minerals vs. First Majestic Silver
Performance |
| Timeline |
| Camino Minerals |
| First Majestic Silver |
Camino Minerals and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camino Minerals and First Majestic
The main advantage of trading using opposite Camino Minerals and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camino Minerals 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.| Camino Minerals vs. Bravada Gold | Camino Minerals vs. Midnight Sun Mining | Camino Minerals vs. Thunderstruck Resources | Camino Minerals vs. Eros Resources Corp |
| First Majestic vs. Ivanhoe Energy | First Majestic vs. Orezone Gold Corp | First Majestic vs. Faraday Copper 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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