Correlation Between MAS Gold and First Majestic
Can any of the company-specific risk be diversified away by investing in both MAS 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 MAS 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 MAS Gold Corp and First Majestic Silver, you can compare the effects of market volatilities on MAS 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 MAS Gold with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Gold and First Majestic.
Diversification Opportunities for MAS Gold and First Majestic
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between MAS and First is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding MAS 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 MAS 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 MAS 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 MAS Gold i.e., MAS Gold and First Majestic go up and down completely randomly.
Pair Corralation between MAS Gold and First Majestic
Assuming the 90 days horizon MAS Gold Corp is expected to generate 5.88 times more return on investment than First Majestic. However, MAS Gold is 5.88 times more volatile than First Majestic Silver. It trades about 0.09 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.03 per unit of risk. If you would invest 1.00 in MAS Gold Corp on September 3, 2024 and sell it today you would earn a total of 0.00 from holding MAS Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAS Gold Corp vs. First Majestic Silver
Performance |
| Timeline |
| MAS Gold Corp |
| First Majestic Silver |
MAS Gold and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAS Gold and First Majestic
The main advantage of trading using opposite MAS Gold and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS 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.| MAS Gold vs. Desert Gold Ventures | MAS Gold vs. Goldbank Mining Corp | MAS Gold vs. Themac Resources Group | MAS Gold vs. Plato Gold Corp |
| First Majestic vs. Precious Metals And | First Majestic vs. Thunderbird Entertainment Group | First Majestic vs. CNJ Capital Investments | First Majestic vs. Arbor Metals 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |