Correlation Between First Majestic and Integra Resources
Can any of the company-specific risk be diversified away by investing in both First Majestic and Integra Resources 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 Integra Resources 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 Integra Resources Corp, you can compare the effects of market volatilities on First Majestic and Integra Resources 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 Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Integra Resources.
Diversification Opportunities for First Majestic and Integra Resources
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Integra is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Integra Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Resources Corp 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 Integra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Resources Corp has no effect on the direction of First Majestic i.e., First Majestic and Integra Resources go up and down completely randomly.
Pair Corralation between First Majestic and Integra Resources
Allowing for the 90-day total investment horizon First Majestic Silver is expected to generate 1.0 times more return on investment than Integra Resources. However, First Majestic is 1.0 times more volatile than Integra Resources Corp. It trades about 0.13 of its potential returns per unit of risk. Integra Resources Corp is currently generating about -0.02 per unit of risk. If you would invest 626.00 in First Majestic Silver on April 30, 2025 and sell it today you would earn a total of 209.00 from holding First Majestic Silver or generate 33.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
First Majestic Silver vs. Integra Resources Corp
Performance |
Timeline |
First Majestic Silver |
Integra Resources Corp |
First Majestic and Integra Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Majestic and Integra Resources
The main advantage of trading using opposite First Majestic and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic position performs unexpectedly, Integra Resources 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 Integra Resources will offset losses from the drop in Integra Resources' long position.First Majestic vs. MAG Silver Corp | First Majestic vs. Silvercorp Metals | First Majestic vs. Aya Gold Silver | First Majestic vs. Reyna Silver Corp |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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