Correlation Between Galantas Gold and First Majestic
Can any of the company-specific risk be diversified away by investing in both Galantas Gold 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 Galantas Gold and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galantas Gold Corp and First Majestic Silver, you can compare the effects of market volatilities on Galantas Gold 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 Galantas Gold with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galantas Gold and First Majestic.
Diversification Opportunities for Galantas Gold and First Majestic
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galantas and First is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Galantas Gold 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 Galantas Gold 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 Galantas Gold 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 Galantas Gold i.e., Galantas Gold and First Majestic go up and down completely randomly.
Pair Corralation between Galantas Gold and First Majestic
Assuming the 90 days horizon Galantas Gold Corp is expected to under-perform the First Majestic. In addition to that, Galantas Gold is 2.08 times more volatile than First Majestic Silver. It trades about -0.17 of its total potential returns per unit of risk. First Majestic Silver is currently generating about -0.13 per unit of volatility. If you would invest 972.00 in First Majestic Silver on September 5, 2024 and sell it today you would lose (89.00) from holding First Majestic Silver or give up 9.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Galantas Gold Corp vs. First Majestic Silver
Performance |
Timeline |
Galantas Gold Corp |
First Majestic Silver |
Galantas Gold and First Majestic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Galantas Gold and First Majestic
The main advantage of trading using opposite Galantas Gold and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galantas Gold 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.Galantas Gold vs. First Majestic Silver | Galantas Gold vs. Ivanhoe Energy | Galantas Gold vs. Orezone Gold Corp | Galantas Gold vs. Faraday Copper Corp |
First Majestic vs. Reliq Health Technologies | First Majestic vs. NeuPath Health | First Majestic vs. Bausch Health Companies | First Majestic vs. TUT Fitness Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stocks Directory Find actively traded stocks across global markets | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |