Correlation Between First Quantum and IAMGold
Can any of the company-specific risk be diversified away by investing in both First Quantum and IAMGold 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 Quantum and IAMGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Quantum Minerals and IAMGold, you can compare the effects of market volatilities on First Quantum and IAMGold 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 Quantum with a short position of IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Quantum and IAMGold.
Diversification Opportunities for First Quantum and IAMGold
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and IAMGold is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding First Quantum Minerals and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold and First Quantum 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 Quantum Minerals are associated (or correlated) with IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of First Quantum i.e., First Quantum and IAMGold go up and down completely randomly.
Pair Corralation between First Quantum and IAMGold
Assuming the 90 days horizon First Quantum Minerals is expected to generate 0.61 times more return on investment than IAMGold. However, First Quantum Minerals is 1.63 times less risky than IAMGold. It trades about 0.21 of its potential returns per unit of risk. IAMGold is currently generating about 0.03 per unit of risk. If you would invest 1,909 in First Quantum Minerals on April 24, 2025 and sell it today you would earn a total of 524.00 from holding First Quantum Minerals or generate 27.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
First Quantum Minerals vs. IAMGold
Performance |
Timeline |
First Quantum Minerals |
IAMGold |
First Quantum and IAMGold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Quantum and IAMGold
The main advantage of trading using opposite First Quantum and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Quantum position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.First Quantum vs. Lundin Mining | First Quantum vs. HudBay Minerals | First Quantum vs. Teck Resources Limited | First Quantum vs. Ivanhoe Mines |
IAMGold vs. Eldorado Gold Corp | IAMGold vs. Kinross Gold Corp | IAMGold vs. Alamos Gold | IAMGold vs. New Gold |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |