Correlation Between Grande Portage and First Majestic
Can any of the company-specific risk be diversified away by investing in both Grande Portage 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 Grande Portage and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Portage Resources and First Majestic Silver, you can compare the effects of market volatilities on Grande Portage 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 Grande Portage with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and First Majestic.
Diversification Opportunities for Grande Portage and First Majestic
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grande and First is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources 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 Grande Portage 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 Grande Portage Resources 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 Grande Portage i.e., Grande Portage and First Majestic go up and down completely randomly.
Pair Corralation between Grande Portage and First Majestic
Assuming the 90 days horizon Grande Portage Resources is expected to under-perform the First Majestic. In addition to that, Grande Portage is 2.66 times more volatile than First Majestic Silver. It trades about -0.25 of its total potential returns per unit of risk. First Majestic Silver is currently generating about -0.31 per unit of volatility. If you would invest 1,062 in First Majestic Silver on August 29, 2024 and sell it today you would lose (201.00) from holding First Majestic Silver or give up 18.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Portage Resources vs. First Majestic Silver
Performance |
| Timeline |
| Grande Portage Resources |
| First Majestic Silver |
Grande Portage and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Portage and First Majestic
The main advantage of trading using opposite Grande Portage and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage 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.| Grande Portage vs. First Majestic Silver | Grande Portage vs. Ivanhoe Energy | Grande Portage vs. Orezone Gold Corp | Grande Portage vs. Faraday Copper Corp |
| First Majestic vs. Talon Metals Corp | First Majestic vs. Champion Gaming Group | First Majestic vs. SalesforceCom CDR | First Majestic vs. Gfl Environmental Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |