Correlation Between First Majestic and Fibra Plus
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By analyzing existing cross correlation between First Majestic Silver and Fibra Plus, you can compare the effects of market volatilities on First Majestic and Fibra Plus 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 Majestic with a short position of Fibra Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Fibra Plus.
Diversification Opportunities for First Majestic and Fibra Plus
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Fibra is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Fibra Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra Plus and First Majestic 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 Majestic Silver are associated (or correlated) with Fibra Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra Plus has no effect on the direction of First Majestic i.e., First Majestic and Fibra Plus go up and down completely randomly.
Pair Corralation between First Majestic and Fibra Plus
Assuming the 90 days horizon First Majestic Silver is expected to generate 0.67 times more return on investment than Fibra Plus. However, First Majestic Silver is 1.5 times less risky than Fibra Plus. It trades about -0.05 of its potential returns per unit of risk. Fibra Plus is currently generating about -0.34 per unit of risk. If you would invest 48,941 in First Majestic Silver on September 2, 2024 and sell it today you would lose (1,340) from holding First Majestic Silver or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. Fibra Plus
Performance |
| Timeline |
| First Majestic Silver |
| Fibra Plus |
First Majestic and Fibra Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Fibra Plus
The main advantage of trading using opposite First Majestic and Fibra Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Fibra Plus 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 Fibra Plus will offset losses from the drop in Fibra Plus' long position.| First Majestic vs. Visa Inc | First Majestic vs. Desarrolladora Homex SAB | First Majestic vs. Tesla Inc | First Majestic vs. CMR SAB de |
| Fibra Plus vs. McEwen Mining | Fibra Plus vs. First Majestic Silver | Fibra Plus vs. Monster Beverage Corp | Fibra Plus vs. Taiwan Semiconductor Manufacturing |
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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