Correlation Between SPTSX Dividend and First Majestic
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and First Majestic Silver, you can compare the effects of market volatilities on SPTSX Dividend 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 SPTSX Dividend with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and First Majestic.
Diversification Opportunities for SPTSX Dividend and First Majestic
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and First is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats 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 SPTSX Dividend 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 SPTSX Dividend Aristocrats 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 SPTSX Dividend i.e., SPTSX Dividend and First Majestic go up and down completely randomly.
Pair Corralation between SPTSX Dividend and First Majestic
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.15 times more return on investment than First Majestic. However, SPTSX Dividend Aristocrats is 6.68 times less risky than First Majestic. It trades about 0.37 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.25 per unit of risk. If you would invest 36,442 in SPTSX Dividend Aristocrats on September 2, 2024 and sell it today you would earn a total of 1,129 from holding SPTSX Dividend Aristocrats or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. First Majestic Silver
Performance |
| Timeline |
SPTSX Dividend and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
First Majestic Silver
Pair trading matchups for First Majestic
Pair Trading with SPTSX Dividend and First Majestic
The main advantage of trading using opposite SPTSX Dividend and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend 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.| SPTSX Dividend vs. Vizsla Silver Corp | SPTSX Dividend vs. Globex Mining Enterprises | SPTSX Dividend vs. Arizona Gold Silver | SPTSX Dividend vs. Renoworks Software |
| First Majestic vs. Converge Technology Solutions | First Majestic vs. Firan Technology Group | First Majestic vs. Broadcom | First Majestic vs. Perseus Mining |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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