Correlation Between WSP Global and First Mining
Can any of the company-specific risk be diversified away by investing in both WSP Global and First Mining 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 WSP Global and First Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WSP Global and First Mining Gold, you can compare the effects of market volatilities on WSP Global and First Mining 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 WSP Global with a short position of First Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of WSP Global and First Mining.
Diversification Opportunities for WSP Global and First Mining
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WSP and First is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding WSP Global and First Mining Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Mining Gold and WSP Global 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 WSP Global are associated (or correlated) with First Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Mining Gold has no effect on the direction of WSP Global i.e., WSP Global and First Mining go up and down completely randomly.
Pair Corralation between WSP Global and First Mining
Assuming the 90 days trading horizon WSP Global is expected to under-perform the First Mining. But the stock apears to be less risky and, when comparing its historical volatility, WSP Global is 4.21 times less risky than First Mining. The stock trades about -0.13 of its potential returns per unit of risk. The First Mining Gold is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 32.00 in First Mining Gold on October 8, 2025 and sell it today you would earn a total of 19.00 from holding First Mining Gold or generate 59.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WSP Global vs. First Mining Gold
Performance |
| Timeline |
| WSP Global |
| First Mining Gold |
WSP Global and First Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WSP Global and First Mining
The main advantage of trading using opposite WSP Global and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WSP Global position performs unexpectedly, First Mining 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 Mining will offset losses from the drop in First Mining's long position.| WSP Global vs. Stantec | WSP Global vs. Ritchie Bros Auctioneers | WSP Global vs. AtkinsRealis Group | WSP Global vs. Bombardier |
| First Mining vs. GoldMining | First Mining vs. Jaguar Mining | First Mining vs. Flinders Resources Limited | First Mining vs. Sitka Gold 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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