Correlation Between Sailfish Royalty and First Majestic
Can any of the company-specific risk be diversified away by investing in both Sailfish Royalty 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 Sailfish Royalty and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sailfish Royalty Corp and First Majestic Silver, you can compare the effects of market volatilities on Sailfish Royalty 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 Sailfish Royalty with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sailfish Royalty and First Majestic.
Diversification Opportunities for Sailfish Royalty and First Majestic
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sailfish and First is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sailfish Royalty Corp 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 Sailfish Royalty 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 Sailfish Royalty Corp 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 Sailfish Royalty i.e., Sailfish Royalty and First Majestic go up and down completely randomly.
Pair Corralation between Sailfish Royalty and First Majestic
Assuming the 90 days trading horizon Sailfish Royalty Corp is expected to generate 0.48 times more return on investment than First Majestic. However, Sailfish Royalty Corp is 2.1 times less risky than First Majestic. It trades about 0.42 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.13 per unit of risk. If you would invest 141.00 in Sailfish Royalty Corp on December 1, 2024 and sell it today you would earn a total of 22.00 from holding Sailfish Royalty Corp or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sailfish Royalty Corp vs. First Majestic Silver
Performance |
| Timeline |
| Sailfish Royalty Corp |
| First Majestic Silver |
Sailfish Royalty and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sailfish Royalty and First Majestic
The main advantage of trading using opposite Sailfish Royalty and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sailfish Royalty 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.| Sailfish Royalty vs. Elemental Royalties Corp | Sailfish Royalty vs. Mako Mining Corp | Sailfish Royalty vs. Empress Royalty Corp | Sailfish Royalty vs. Orogen Royalties |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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