Correlation Between PureCycle Technologies and First Mining

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

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

Diversification Opportunities for PureCycle Technologies and First Mining

0.43

Correlation Coefficient

PureCycle Technologies  First Mining

Very weak diversification

The 3 months correlation between PureCycle and First is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding PureCycle Technologies 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 PureCycle Technologies 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 PureCycle Technologies 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 PureCycle Technologies i.e., PureCycle Technologies and First Mining go up and down completely randomly.

Pair Corralation between PureCycle Technologies and First Mining

Assuming the 90 days horizon PureCycle Technologies is expected to generate 1.73 times more return on investment than First Mining. However, PureCycle Technologies is 1.73 times more volatile than First Mining Gold. It trades about 0.17 of its potential returns per unit of risk. First Mining Gold is currently generating about 0.03 per unit of risk. If you would invest  188.00  in PureCycle Technologies on May 15, 2025 and sell it today you would earn a total of  227.00  from holding PureCycle Technologies or generate 120.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

PureCycle Technologies  vs.  First Mining Gold

PureCycle Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PureCycle Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, PureCycle Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

First Mining Gold

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in First Mining Gold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, First Mining may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with PureCycle Technologies and First Mining

The main advantage of trading using opposite PureCycle Technologies and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureCycle Technologies 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 PureCycle Technologies 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.