Correlation Between Media and First Majestic
Can any of the company-specific risk be diversified away by investing in both Media 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 Media and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media and Games and First Majestic Silver, you can compare the effects of market volatilities on Media 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 Media with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and First Majestic.
Diversification Opportunities for Media and First Majestic
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Media and First is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games 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 Media 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 Media and Games 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 Media i.e., Media and First Majestic go up and down completely randomly.
Pair Corralation between Media and First Majestic
Assuming the 90 days trading horizon Media and Games is expected to generate 1.07 times more return on investment than First Majestic. However, Media is 1.07 times more volatile than First Majestic Silver. It trades about 0.1 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.0 per unit of risk. If you would invest 308.00 in Media and Games on November 5, 2024 and sell it today you would earn a total of 21.00 from holding Media and Games or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. First Majestic Silver
Performance |
| Timeline |
| Media and Games |
| First Majestic Silver |
Media and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and First Majestic
The main advantage of trading using opposite Media and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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.| Media vs. AIR PRODCHEMICALS | Media vs. FAST RETAIL ADR | Media vs. Tencent Music Entertainment | Media vs. COSTCO WHOLESALE CDR |
| First Majestic vs. GALENA MINING LTD | First Majestic vs. MINCO SILVER | First Majestic vs. Sumitomo Mitsui Construction | First Majestic vs. Perseus Mining Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |