Correlation Between First Majestic and Intuit
Can any of the company-specific risk be diversified away by investing in both First Majestic and Intuit 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 Intuit 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 Intuit Inc, you can compare the effects of market volatilities on First Majestic and Intuit 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 Intuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Intuit.
Diversification Opportunities for First Majestic and Intuit
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Intuit is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit 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 Intuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuit Inc has no effect on the direction of First Majestic i.e., First Majestic and Intuit go up and down completely randomly.
Pair Corralation between First Majestic and Intuit
Assuming the 90 days horizon First Majestic Silver is expected to under-perform the Intuit. But the stock apears to be less risky and, when comparing its historical volatility, First Majestic Silver is 2.15 times less risky than Intuit. The stock trades about -0.32 of its potential returns per unit of risk. The Intuit Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,304,870 in Intuit Inc on September 26, 2024 and sell it today you would lose (6,563) from holding Intuit Inc or give up 0.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
First Majestic Silver vs. Intuit Inc
Performance |
Timeline |
First Majestic Silver |
Intuit Inc |
First Majestic and Intuit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Majestic and Intuit
The main advantage of trading using opposite First Majestic and Intuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Intuit 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 Intuit will offset losses from the drop in Intuit's long position.First Majestic vs. McEwen Mining | First Majestic vs. Costco Wholesale | First Majestic vs. Micron Technology | First Majestic vs. The Bank of |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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