Correlation Between Silver Elephant and First Mining

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

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

Diversification Opportunities for Silver Elephant and First Mining

0.32

Correlation Coefficient

Silver Elephant  First Mining

Weak diversification

The 3 months correlation between Silver and First is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Silver Elephant Mining 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 Silver Elephant 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 Silver Elephant Mining 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 Silver Elephant i.e., Silver Elephant and First Mining go up and down completely randomly.

Pair Corralation between Silver Elephant and First Mining

Assuming the 90 days horizon Silver Elephant Mining is expected to under-perform the First Mining. In addition to that, Silver Elephant is 1.04 times more volatile than First Mining Gold. It trades about -0.04 of its total potential returns per unit of risk. First Mining Gold is currently generating about 0.03 per unit of volatility. If you would invest  12.00  in First Mining Gold on May 4, 2025 and sell it today you would earn a total of  0.00  from holding First Mining Gold or generate 0.0% return on investment over 90 days.

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

Silver Elephant Mining  vs.  First Mining Gold

Silver Elephant Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silver Elephant Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 Silver Elephant and First Mining

The main advantage of trading using opposite Silver Elephant and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Elephant 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 Silver Elephant Mining 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.