Correlation Between Tidal Trust and First Mining

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

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

Diversification Opportunities for Tidal Trust and First Mining

0.47

Correlation Coefficient

Tidal Trust  First Mining

Very weak diversification

The 3 months correlation between Tidal and First is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II 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 Tidal Trust 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 Tidal Trust II 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 Tidal Trust i.e., Tidal Trust and First Mining go up and down completely randomly.

Pair Corralation between Tidal Trust and First Mining

Given the investment horizon of 90 days Tidal Trust is expected to generate 18.04 times less return on investment than First Mining. But when comparing it to its historical volatility, Tidal Trust II is 8.75 times less risky than First Mining. It trades about 0.15 of its potential returns per unit of risk. First Mining Gold is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  20.00  in First Mining Gold on June 30, 2025 and sell it today you would earn a total of  9.00  from holding First Mining Gold or generate 45.0% return on investment over 90 days.

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

Tidal Trust II  vs.  First Mining Gold

Tidal Trust II

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Tidal Trust may actually be approaching a critical reversion point that can send shares even higher in October 2025.

First Mining Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Mining Gold are ranked lower than 13 (%) 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 Tidal Trust and First Mining

The main advantage of trading using opposite Tidal Trust and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust 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 Tidal Trust II 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.