Correlation Between Pan American and Firefinch
Can any of the company-specific risk be diversified away by investing in both Pan American and Firefinch 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 Pan American and Firefinch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan American Silver and Firefinch Limited, you can compare the effects of market volatilities on Pan American and Firefinch 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 Pan American with a short position of Firefinch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan American and Firefinch.
Diversification Opportunities for Pan American and Firefinch
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pan and Firefinch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pan American Silver and Firefinch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firefinch Limited and Pan American 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 Pan American Silver are associated (or correlated) with Firefinch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firefinch Limited has no effect on the direction of Pan American i.e., Pan American and Firefinch go up and down completely randomly.
Pair Corralation between Pan American and Firefinch
If you would invest 1,825 in Pan American Silver on November 27, 2024 and sell it today you would earn a total of 619.00 from holding Pan American Silver or generate 33.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Pan American Silver vs. Firefinch Limited
Performance |
| Timeline |
| Pan American Silver |
| Firefinch Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Pan American and Firefinch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan American and Firefinch
The main advantage of trading using opposite Pan American and Firefinch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan American position performs unexpectedly, Firefinch 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 Firefinch will offset losses from the drop in Firefinch's long position.| Pan American vs. Newmont Goldcorp Corp | Pan American vs. Wheaton Precious Metals | Pan American vs. Franco Nevada | Pan American vs. Kinross Gold |
| Firefinch vs. Newmont Goldcorp Corp | Firefinch vs. Pan American Silver | Firefinch vs. Agnico Eagle Mines | Firefinch vs. Kinross Gold |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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