Correlation Between Hawkeye Gold and First Majestic
Can any of the company-specific risk be diversified away by investing in both Hawkeye Gold 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 Hawkeye Gold and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkeye Gold and and First Majestic Silver, you can compare the effects of market volatilities on Hawkeye Gold 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 Hawkeye Gold with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkeye Gold and First Majestic.
Diversification Opportunities for Hawkeye Gold and First Majestic
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hawkeye and First is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hawkeye Gold and 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 Hawkeye Gold 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 Hawkeye Gold and 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 Hawkeye Gold i.e., Hawkeye Gold and First Majestic go up and down completely randomly.
Pair Corralation between Hawkeye Gold and First Majestic
Assuming the 90 days trading horizon Hawkeye Gold and is expected to generate 2.88 times more return on investment than First Majestic. However, Hawkeye Gold is 2.88 times more volatile than First Majestic Silver. It trades about 0.04 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.01 per unit of risk. If you would invest 6.00 in Hawkeye Gold and on September 1, 2024 and sell it today you would lose (1.00) from holding Hawkeye Gold and or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkeye Gold and vs. First Majestic Silver
Performance |
| Timeline |
| Hawkeye Gold |
| First Majestic Silver |
Hawkeye Gold and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkeye Gold and First Majestic
The main advantage of trading using opposite Hawkeye Gold and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkeye Gold 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.| Hawkeye Gold vs. First National Financial | Hawkeye Gold vs. Globex Mining Enterprises | Hawkeye Gold vs. Canso Credit Trust | Hawkeye Gold vs. Millennium Silver Corp |
| First Majestic vs. Slate Grocery REIT | First Majestic vs. Toronto Dominion Bank | First Majestic vs. Enduro Metals Corp | First Majestic vs. Intact Financial 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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