Correlation Between Silver Bear and First Majestic
Can any of the company-specific risk be diversified away by investing in both Silver Bear 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 Silver Bear and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Bear Resources and First Majestic Silver, you can compare the effects of market volatilities on Silver Bear 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 Silver Bear with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Bear and First Majestic.
Diversification Opportunities for Silver Bear and First Majestic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silver and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Silver Bear Resources 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 Silver Bear 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 Silver Bear Resources 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 Silver Bear i.e., Silver Bear and First Majestic go up and down completely randomly.
Pair Corralation between Silver Bear and First Majestic
If you would invest 795.00 in First Majestic Silver on September 12, 2024 and sell it today you would earn a total of 113.00 from holding First Majestic Silver or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Bear Resources vs. First Majestic Silver
Performance |
| Timeline |
| Silver Bear Resources |
| First Majestic Silver |
Silver Bear and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Bear and First Majestic
The main advantage of trading using opposite Silver Bear and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Bear 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.| Silver Bear vs. Rocky Mountain Liquor | Silver Bear vs. Precision Drilling | Silver Bear vs. AKITA Drilling | Silver Bear vs. Ramp Metals |
| First Majestic vs. Wishpond Technologies | First Majestic vs. 2028 Investment Grade | First Majestic vs. Tree Island Steel | First Majestic vs. Advent Wireless |
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.
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