Correlation Between Wilmington Capital and First Mining
Can any of the company-specific risk be diversified away by investing in both Wilmington Capital and First Mining 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 Wilmington Capital and First Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Capital Management and First Mining Gold, you can compare the effects of market volatilities on Wilmington Capital and First Mining 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 Wilmington Capital with a short position of First Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Capital and First Mining.
Diversification Opportunities for Wilmington Capital and First Mining
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wilmington and First is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Capital Management and First Mining Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Mining Gold and Wilmington Capital 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 Wilmington Capital Management are associated (or correlated) with First Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Mining Gold has no effect on the direction of Wilmington Capital i.e., Wilmington Capital and First Mining go up and down completely randomly.
Pair Corralation between Wilmington Capital and First Mining
Assuming the 90 days trading horizon Wilmington Capital Management is expected to generate 0.03 times more return on investment than First Mining. However, Wilmington Capital Management is 32.26 times less risky than First Mining. It trades about -0.22 of its potential returns per unit of risk. First Mining Gold is currently generating about -0.11 per unit of risk. If you would invest 231.00 in Wilmington Capital Management on October 20, 2024 and sell it today you would lose (1.00) from holding Wilmington Capital Management or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Capital Management vs. First Mining Gold
Performance |
| Timeline |
| Wilmington Capital |
| First Mining Gold |
Wilmington Capital and First Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Capital and First Mining
The main advantage of trading using opposite Wilmington Capital and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Capital position performs unexpectedly, First Mining 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 Mining will offset losses from the drop in First Mining's long position.| Wilmington Capital vs. Pace Metals | Wilmington Capital vs. 2028 Investment Grade | Wilmington Capital vs. Brookfield Investments | Wilmington Capital vs. Magna Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |