Correlation Between I 80 and First Majestic
Can any of the company-specific risk be diversified away by investing in both I 80 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 I 80 and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i 80 Gold Corp and First Majestic Silver, you can compare the effects of market volatilities on I 80 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 I 80 with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and First Majestic.
Diversification Opportunities for I 80 and First Majestic
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IAU and First is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding i 80 Gold Corp 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 I 80 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 i 80 Gold Corp 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 I 80 i.e., I 80 and First Majestic go up and down completely randomly.
Pair Corralation between I 80 and First Majestic
Assuming the 90 days trading horizon i 80 Gold Corp is expected to under-perform the First Majestic. In addition to that, I 80 is 1.5 times more volatile than First Majestic Silver. It trades about -0.03 of its total potential returns per unit of risk. First Majestic Silver is currently generating about 0.03 per unit of volatility. If you would invest 779.00 in First Majestic Silver on August 31, 2024 and sell it today you would earn a total of 89.00 from holding First Majestic Silver or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
i 80 Gold Corp vs. First Majestic Silver
Performance |
| Timeline |
| i 80 Gold |
| First Majestic Silver |
I 80 and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and First Majestic
The main advantage of trading using opposite I 80 and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 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.| I 80 vs. Solar Alliance Energy | I 80 vs. Global X Active | I 80 vs. Financial 15 Split | I 80 vs. Rubicon Organics |
| First Majestic vs. Nova Leap Health | First Majestic vs. Leveljump Healthcare Corp | First Majestic vs. Perseus Mining | First Majestic vs. CVS HEALTH CDR |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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