Correlation Between McEwen Mining and First Majestic
Can any of the company-specific risk be diversified away by investing in both McEwen Mining 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 McEwen Mining and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and First Majestic Silver, you can compare the effects of market volatilities on McEwen Mining 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 McEwen Mining with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and First Majestic.
Diversification Opportunities for McEwen Mining and First Majestic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining 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 McEwen Mining 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 McEwen Mining 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 McEwen Mining i.e., McEwen Mining and First Majestic go up and down completely randomly.
Pair Corralation between McEwen Mining and First Majestic
If you would invest 46,932 in First Majestic Silver on November 3, 2024 and sell it today you would earn a total of 1,691 from holding First Majestic Silver or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
McEwen Mining vs. First Majestic Silver
Performance |
| Timeline |
| McEwen Mining |
| First Majestic Silver |
McEwen Mining and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and First Majestic
The main advantage of trading using opposite McEwen Mining and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining 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.| McEwen Mining vs. Ameriprise Financial | McEwen Mining vs. First Majestic Silver | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Grupo Carso SAB |
| First Majestic vs. FibraHotel | First Majestic vs. UnitedHealth Group Incorporated | First Majestic vs. Grupo Carso SAB | First Majestic vs. Taiwan Semiconductor Manufacturing |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |