Correlation Between Aris Gold and First Majestic
Can any of the company-specific risk be diversified away by investing in both Aris 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 Aris 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 Aris Gold and First Majestic Silver, you can compare the effects of market volatilities on Aris 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 Aris Gold with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aris Gold and First Majestic.
Diversification Opportunities for Aris Gold and First Majestic
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aris and First is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aris Gold 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 Aris 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 Aris Gold 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 Aris Gold i.e., Aris Gold and First Majestic go up and down completely randomly.
Pair Corralation between Aris Gold and First Majestic
Assuming the 90 days horizon Aris Gold is expected to generate 1.11 times less return on investment than First Majestic. In addition to that, Aris Gold is 1.12 times more volatile than First Majestic Silver. It trades about 0.14 of its total potential returns per unit of risk. First Majestic Silver is currently generating about 0.18 per unit of volatility. If you would invest 1,325 in First Majestic Silver on August 31, 2025 and sell it today you would earn a total of 785.00 from holding First Majestic Silver or generate 59.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aris Gold vs. First Majestic Silver
Performance |
| Timeline |
| Aris Gold |
| First Majestic Silver |
Aris Gold and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aris Gold and First Majestic
The main advantage of trading using opposite Aris Gold and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aris 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.| Aris Gold vs. Titanium Transportation Group | Aris Gold vs. Gfl Environmental Holdings | Aris Gold vs. Applied Materials, | Aris Gold vs. Broadcom CDR |
| First Majestic vs. Hemisphere Energy | First Majestic vs. Sparx Technology | First Majestic vs. Data Communications Management | First Majestic vs. Cogeco Communications |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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