Correlation Between Agnico Eagle and Chalice Mining
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Chalice 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 Agnico Eagle and Chalice Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agnico Eagle Mines and Chalice Mining Limited, you can compare the effects of market volatilities on Agnico Eagle and Chalice 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 Agnico Eagle with a short position of Chalice Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Chalice Mining.
Diversification Opportunities for Agnico Eagle and Chalice Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agnico and Chalice is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Chalice Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice Mining and Agnico Eagle 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 Agnico Eagle Mines are associated (or correlated) with Chalice Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Mining has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Chalice Mining go up and down completely randomly.
Pair Corralation between Agnico Eagle and Chalice Mining
Assuming the 90 days horizon Agnico Eagle Mines is expected to under-perform the Chalice Mining. But the stock apears to be less risky and, when comparing its historical volatility, Agnico Eagle Mines is 4.72 times less risky than Chalice Mining. The stock trades about -0.19 of its potential returns per unit of risk. The Chalice Mining Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Chalice Mining Limited on December 10, 2024 and sell it today you would earn a total of 10.00 from holding Chalice Mining Limited or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Chalice Mining Limited
Performance |
| Timeline |
| Agnico Eagle Mines |
| Chalice Mining |
Agnico Eagle and Chalice Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Chalice Mining
The main advantage of trading using opposite Agnico Eagle and Chalice Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Chalice 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 Chalice Mining will offset losses from the drop in Chalice Mining's long position.| Agnico Eagle vs. Vienna Insurance Group | Agnico Eagle vs. Selective Insurance Group | Agnico Eagle vs. CODERE ONLINE LUX | Agnico Eagle vs. Zurich Insurance Group |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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