Correlation Between First Majestic and Biogen
Can any of the company-specific risk be diversified away by investing in both First Majestic and Biogen 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 First Majestic and Biogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Majestic Silver and Biogen Inc, you can compare the effects of market volatilities on First Majestic and Biogen 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 First Majestic with a short position of Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Biogen.
Diversification Opportunities for First Majestic and Biogen
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Biogen is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc and First Majestic 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 First Majestic Silver are associated (or correlated) with Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of First Majestic i.e., First Majestic and Biogen go up and down completely randomly.
Pair Corralation between First Majestic and Biogen
Assuming the 90 days horizon First Majestic Silver is expected to generate 0.61 times more return on investment than Biogen. However, First Majestic Silver is 1.63 times less risky than Biogen. It trades about 0.09 of its potential returns per unit of risk. Biogen Inc is currently generating about -0.14 per unit of risk. If you would invest 47,449 in First Majestic Silver on December 1, 2024 and sell it today you would earn a total of 2,524 from holding First Majestic Silver or generate 5.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
First Majestic Silver vs. Biogen Inc
Performance |
Timeline |
First Majestic Silver |
Biogen Inc |
First Majestic and Biogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Majestic and Biogen
The main advantage of trading using opposite First Majestic and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Biogen 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 Biogen will offset losses from the drop in Biogen's long position.First Majestic vs. Deutsche Bank Aktiengesellschaft | First Majestic vs. Desarrolladora Homex SAB | First Majestic vs. Salesforce, | First Majestic vs. CVS Health |
Biogen vs. Salesforce, | Biogen vs. Grupo Sports World | Biogen vs. Monster Beverage Corp | Biogen vs. Taiwan Semiconductor Manufacturing |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |