Correlation Between Xtract One and First Majestic
Can any of the company-specific risk be diversified away by investing in both Xtract One 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 Xtract One and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtract One Technologies and First Majestic Silver, you can compare the effects of market volatilities on Xtract One 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 Xtract One with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtract One and First Majestic.
Diversification Opportunities for Xtract One and First Majestic
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtract and First is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xtract One Technologies 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 Xtract One 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 Xtract One Technologies 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 Xtract One i.e., Xtract One and First Majestic go up and down completely randomly.
Pair Corralation between Xtract One and First Majestic
Assuming the 90 days trading horizon Xtract One Technologies is expected to generate 0.9 times more return on investment than First Majestic. However, Xtract One Technologies is 1.11 times less risky than First Majestic. It trades about -0.04 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.3 per unit of risk. If you would invest 69.00 in Xtract One Technologies on August 27, 2024 and sell it today you would lose (2.00) from holding Xtract One Technologies or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtract One Technologies vs. First Majestic Silver
Performance |
| Timeline |
| Xtract One Technologies |
| First Majestic Silver |
Xtract One and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtract One and First Majestic
The main advantage of trading using opposite Xtract One and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtract One 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.| Xtract One vs. Slate Grocery REIT | Xtract One vs. Roots Corp | Xtract One vs. Aimia Inc | Xtract One vs. Tucows Inc |
| First Majestic vs. Quisitive Technology Solutions | First Majestic vs. Canso Select Opportunities | First Majestic vs. Canadian General Investments | First Majestic vs. Sparx Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |