Correlation Between First Majestic and Grupo Financiero
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By analyzing existing cross correlation between First Majestic Silver and Grupo Financiero Banorte, you can compare the effects of market volatilities on First Majestic and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Grupo Financiero.
Diversification Opportunities for First Majestic and Grupo Financiero
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Grupo is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Banorte has no effect on the direction of First Majestic i.e., First Majestic and Grupo Financiero go up and down completely randomly.
Pair Corralation between First Majestic and Grupo Financiero
Assuming the 90 days horizon First Majestic Silver is expected to under-perform the Grupo Financiero. But the stock apears to be less risky and, when comparing its historical volatility, First Majestic Silver is 1.85 times less risky than Grupo Financiero. The stock trades about -0.19 of its potential returns per unit of risk. The Grupo Financiero Banorte is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 13,555 in Grupo Financiero Banorte on October 11, 2024 and sell it today you would earn a total of 458.00 from holding Grupo Financiero Banorte or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
First Majestic Silver vs. Grupo Financiero Banorte
Performance |
| Timeline |
| First Majestic Silver |
| Grupo Financiero Banorte |
First Majestic and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Grupo Financiero
The main advantage of trading using opposite First Majestic and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.| First Majestic vs. United States Steel | First Majestic vs. New Oriental Education | First Majestic vs. Verizon Communications | First Majestic vs. Grupo Industrial Saltillo |
| Grupo Financiero vs. GMxico Transportes SAB | Grupo Financiero vs. First Majestic Silver | Grupo Financiero vs. Grupo Sports World | Grupo Financiero vs. Monster Beverage Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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