Correlation Between First Quantum and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both First Quantum and Alamos Gold 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 Quantum and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Quantum Minerals and Alamos Gold, you can compare the effects of market volatilities on First Quantum and Alamos Gold 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 Quantum with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Quantum and Alamos Gold.
Diversification Opportunities for First Quantum and Alamos Gold
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Alamos is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding First Quantum Minerals and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and First Quantum 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 Quantum Minerals are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of First Quantum i.e., First Quantum and Alamos Gold go up and down completely randomly.
Pair Corralation between First Quantum and Alamos Gold
Assuming the 90 days horizon First Quantum Minerals is expected to generate 0.83 times more return on investment than Alamos Gold. However, First Quantum Minerals is 1.21 times less risky than Alamos Gold. It trades about 0.2 of its potential returns per unit of risk. Alamos Gold is currently generating about 0.14 per unit of risk. If you would invest 2,241 in First Quantum Minerals on August 20, 2025 and sell it today you would earn a total of 719.00 from holding First Quantum Minerals or generate 32.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Quantum Minerals vs. Alamos Gold
Performance |
| Timeline |
| First Quantum Minerals |
| Alamos Gold |
First Quantum and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Quantum and Alamos Gold
The main advantage of trading using opposite First Quantum and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Quantum position performs unexpectedly, Alamos Gold 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.| First Quantum vs. Lundin Mining | First Quantum vs. Lundin Gold | First Quantum vs. Ivanhoe Mines | First Quantum vs. Alamos Gold |
| Alamos Gold vs. Pan American Silver | Alamos Gold vs. Lundin Gold | Alamos Gold vs. Ivanhoe Mines | Alamos Gold vs. Endeavour Mining Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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