Correlation Between First Mining and Artemis Gold
Can any of the company-specific risk be diversified away by investing in both First Mining and Artemis Gold 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 Artemis Gold 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 Artemis Gold, you can compare the effects of market volatilities on First Mining and Artemis Gold 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 Artemis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Mining and Artemis Gold.
Diversification Opportunities for First Mining and Artemis Gold
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and Artemis is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding First Mining Gold and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold 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 Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of First Mining i.e., First Mining and Artemis Gold go up and down completely randomly.
Pair Corralation between First Mining and Artemis Gold
Assuming the 90 days horizon First Mining is expected to generate 24.42 times less return on investment than Artemis Gold. In addition to that, First Mining is 1.56 times more volatile than Artemis Gold. It trades about 0.0 of its total potential returns per unit of risk. Artemis Gold is currently generating about 0.1 per unit of volatility. If you would invest 306.00 in Artemis Gold on September 3, 2024 and sell it today you would earn a total of 729.00 from holding Artemis Gold or generate 238.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Mining Gold vs. Artemis Gold
Performance |
| Timeline |
| First Mining Gold |
| Artemis Gold |
First Mining and Artemis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Mining and Artemis Gold
The main advantage of trading using opposite First Mining and Artemis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Mining position performs unexpectedly, Artemis Gold 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 Artemis Gold will offset losses from the drop in Artemis Gold's long position.| First Mining vs. Aurion Resources | First Mining vs. Orezone Gold Corp | First Mining vs. Rio2 Limited | First Mining vs. Norsemont Mining |
| Artemis Gold vs. Harmony Gold Mining | Artemis Gold vs. SPACE | Artemis Gold vs. T Rowe Price | Artemis Gold vs. Ampleforth |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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