Correlation Between Cornerstone Strategic and First Mining

Can any of the company-specific risk be diversified away by investing in both Cornerstone Strategic 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 Cornerstone Strategic and First Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cornerstone Strategic Value and First Mining Gold, you can compare the effects of market volatilities on Cornerstone Strategic 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 Cornerstone Strategic with a short position of First Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and First Mining.

Diversification Opportunities for Cornerstone Strategic and First Mining

0.49

Correlation Coefficient

Cornerstone Strategic  First Mining

Very weak diversification

The 3 months correlation between Cornerstone and First is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value 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 Cornerstone Strategic 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 Cornerstone Strategic Value 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 Cornerstone Strategic i.e., Cornerstone Strategic and First Mining go up and down completely randomly.

Pair Corralation between Cornerstone Strategic and First Mining

Considering the 90-day investment horizon Cornerstone Strategic is expected to generate 1.22 times less return on investment than First Mining. But when comparing it to its historical volatility, Cornerstone Strategic Value is 6.52 times less risky than First Mining. It trades about 0.32 of its potential returns per unit of risk. First Mining Gold is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  16.00  in First Mining Gold on May 12, 2025 and sell it today you would earn a total of  2.00  from holding First Mining Gold or generate 12.5% return on investment over 90 days.

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

Cornerstone Strategic Value  vs.  First Mining Gold

Cornerstone Strategic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak essential indicators, Cornerstone Strategic displayed solid returns over the last few months and may actually be approaching a breakup point.

First Mining Gold

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in First Mining Gold are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, First Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cornerstone Strategic and First Mining

The main advantage of trading using opposite Cornerstone Strategic and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornerstone Strategic 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.

The idea behind Cornerstone Strategic Value and First Mining Gold 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.