Correlation Between First Majestic and FIBRA Storage
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By analyzing existing cross correlation between First Majestic Silver and FIBRA Storage, you can compare the effects of market volatilities on First Majestic and FIBRA Storage 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 Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and FIBRA Storage.
Diversification Opportunities for First Majestic and FIBRA Storage
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and FIBRA is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and FIBRA Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Storage 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 Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Storage has no effect on the direction of First Majestic i.e., First Majestic and FIBRA Storage go up and down completely randomly.
Pair Corralation between First Majestic and FIBRA Storage
Assuming the 90 days horizon First Majestic Silver is expected to generate 0.94 times more return on investment than FIBRA Storage. However, First Majestic Silver is 1.07 times less risky than FIBRA Storage. It trades about 0.04 of its potential returns per unit of risk. FIBRA Storage is currently generating about 0.01 per unit of risk. If you would invest 40,510 in First Majestic Silver on August 29, 2024 and sell it today you would earn a total of 7,790 from holding First Majestic Silver or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. FIBRA Storage
Performance |
| Timeline |
| First Majestic Silver |
| FIBRA Storage |
First Majestic and FIBRA Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and FIBRA Storage
The main advantage of trading using opposite First Majestic and FIBRA Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, FIBRA Storage 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 Storage will offset losses from the drop in FIBRA Storage's long position.| First Majestic vs. Visa Inc | First Majestic vs. Desarrolladora Homex SAB | First Majestic vs. CMR SAB de | First Majestic vs. The Select Sector |
| FIBRA Storage vs. Genworth Financial | FIBRA Storage vs. Verizon Communications | FIBRA Storage vs. GMxico Transportes SAB | FIBRA Storage vs. Lloyds Banking Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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