Correlation Between First Mining and Altamira Gold
Can any of the company-specific risk be diversified away by investing in both First Mining and Altamira 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 Altamira 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 Altamira Gold Corp, you can compare the effects of market volatilities on First Mining and Altamira 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 Altamira Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Mining and Altamira Gold.
Diversification Opportunities for First Mining and Altamira Gold
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Altamira is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding First Mining Gold and Altamira Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamira Gold Corp 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 Altamira Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamira Gold Corp has no effect on the direction of First Mining i.e., First Mining and Altamira Gold go up and down completely randomly.
Pair Corralation between First Mining and Altamira Gold
Assuming the 90 days horizon First Mining Gold is expected to generate 1.15 times more return on investment than Altamira Gold. However, First Mining is 1.15 times more volatile than Altamira Gold Corp. It trades about -0.14 of its potential returns per unit of risk. Altamira Gold Corp is currently generating about -0.37 per unit of risk. If you would invest 11.00 in First Mining Gold on August 29, 2024 and sell it today you would lose (1.70) from holding First Mining Gold or give up 15.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
First Mining Gold vs. Altamira Gold Corp
Performance |
| Timeline |
| First Mining Gold |
| Altamira Gold Corp |
First Mining and Altamira Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Mining and Altamira Gold
The main advantage of trading using opposite First Mining and Altamira Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Mining position performs unexpectedly, Altamira 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 Altamira Gold will offset losses from the drop in Altamira Gold's long position.| First Mining vs. Silver Hammer Mining | First Mining vs. Reyna Silver Corp | First Mining vs. Guanajuato Silver | First Mining vs. Silver One Resources |
| Altamira Gold vs. Vertiv Holdings Co | Altamira Gold vs. Nasdaq Inc | Altamira Gold vs. McDonalds | Altamira Gold vs. Walmart |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |