Correlation Between First Majestic and Huntsman

Can any of the company-specific risk be diversified away by investing in both First Majestic and Huntsman 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 Huntsman 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 Huntsman, you can compare the effects of market volatilities on First Majestic and Huntsman 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 Huntsman. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Huntsman.

Diversification Opportunities for First Majestic and Huntsman

-0.5

Correlation Coefficient

First Majestic  Huntsman

Very good diversification

The 3 months correlation between First and Huntsman is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Huntsman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman 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 Huntsman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman has no effect on the direction of First Majestic i.e., First Majestic and Huntsman go up and down completely randomly.

Pair Corralation between First Majestic and Huntsman

Allowing for the 90-day total investment horizon First Majestic Silver is expected to generate 1.24 times more return on investment than Huntsman. However, First Majestic is 1.24 times more volatile than Huntsman. It trades about 0.12 of its potential returns per unit of risk. Huntsman is currently generating about -0.09 per unit of risk. If you would invest  603.00  in First Majestic Silver on May 4, 2025 and sell it today you would earn a total of  180.00  from holding First Majestic Silver or generate 29.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

First Majestic Silver  vs.  Huntsman

First Majestic Silver

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in First Majestic Silver are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, First Majestic reported solid returns over the last few months and may actually be approaching a breakup point.

Huntsman

Risk-Adjusted Performance

Very Weak

Over the last 90 days Huntsman has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with First Majestic and Huntsman

The main advantage of trading using opposite First Majestic and Huntsman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Huntsman 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 Huntsman will offset losses from the drop in Huntsman's long position.

The idea behind First Majestic Silver and Huntsman pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.