Correlation Between First Mining and Hammond Power
Can any of the company-specific risk be diversified away by investing in both First Mining and Hammond Power 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 Mining and Hammond Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Mining Gold and Hammond Power Solutions, you can compare the effects of market volatilities on First Mining and Hammond Power 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 Mining with a short position of Hammond Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Mining and Hammond Power.
Diversification Opportunities for First Mining and Hammond Power
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Hammond is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding First Mining Gold and Hammond Power Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammond Power Solutions and First Mining 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 Mining Gold are associated (or correlated) with Hammond Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hammond Power Solutions has no effect on the direction of First Mining i.e., First Mining and Hammond Power go up and down completely randomly.
Pair Corralation between First Mining and Hammond Power
Assuming the 90 days horizon First Mining Gold is expected to generate 1.1 times more return on investment than Hammond Power. However, First Mining is 1.1 times more volatile than Hammond Power Solutions. It trades about 0.01 of its potential returns per unit of risk. Hammond Power Solutions is currently generating about -0.06 per unit of risk. If you would invest 13.00 in First Mining Gold on October 28, 2024 and sell it today you would earn a total of 0.00 from holding First Mining Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Mining Gold vs. Hammond Power Solutions
Performance |
| Timeline |
| First Mining Gold |
| Hammond Power Solutions |
First Mining and Hammond Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Mining and Hammond Power
The main advantage of trading using opposite First Mining and Hammond Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Mining position performs unexpectedly, Hammond Power 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 Hammond Power will offset losses from the drop in Hammond Power's long position.| First Mining vs. NV Gold Corp | First Mining vs. Prosper Gold Corp | First Mining vs. Kesselrun Resources | First Mining vs. iShares Canadian HYBrid |
| Hammond Power vs. Hammond Manufacturing | Hammond Power vs. Firan Technology Group | Hammond Power vs. Supremex | Hammond Power vs. Geodrill 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |