Correlation Between Transatlantic Mining and First Majestic
Can any of the company-specific risk be diversified away by investing in both Transatlantic 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 Transatlantic 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 Transatlantic Mining Corp and First Majestic Silver, you can compare the effects of market volatilities on Transatlantic 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 Transatlantic Mining with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transatlantic Mining and First Majestic.
Diversification Opportunities for Transatlantic Mining and First Majestic
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transatlantic and First is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Transatlantic Mining 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 Transatlantic 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 Transatlantic Mining 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 Transatlantic Mining i.e., Transatlantic Mining and First Majestic go up and down completely randomly.
Pair Corralation between Transatlantic Mining and First Majestic
Assuming the 90 days horizon Transatlantic Mining Corp is expected to generate 3.32 times more return on investment than First Majestic. However, Transatlantic Mining is 3.32 times more volatile than First Majestic Silver. It trades about 0.07 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.1 per unit of risk. If you would invest 8.50 in Transatlantic Mining Corp on November 27, 2024 and sell it today you would earn a total of 0.50 from holding Transatlantic Mining Corp or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transatlantic Mining Corp vs. First Majestic Silver
Performance |
| Timeline |
| Transatlantic Mining Corp |
| First Majestic Silver |
Transatlantic Mining and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transatlantic Mining and First Majestic
The main advantage of trading using opposite Transatlantic Mining and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transatlantic 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.| Transatlantic Mining vs. Financial 15 Split | Transatlantic Mining vs. Toronto Dominion Bank Pref | Transatlantic Mining vs. Major Drilling Group | Transatlantic Mining vs. Canso Credit Trust |
| First Majestic vs. Ivanhoe Energy | First Majestic vs. Flinders Resources Limited | First Majestic vs. Orezone Gold Corp | First Majestic vs. Faraday Copper 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |