Correlation Between Agnico Eagle and Nucletron Electronic
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Nucletron Electronic 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 Nucletron Electronic 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 Nucletron Electronic Aktiengesellschaft, you can compare the effects of market volatilities on Agnico Eagle and Nucletron Electronic 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 Nucletron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Nucletron Electronic.
Diversification Opportunities for Agnico Eagle and Nucletron Electronic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agnico and Nucletron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Nucletron Electronic Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nucletron Electronic 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 Nucletron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nucletron Electronic has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Nucletron Electronic go up and down completely randomly.
Pair Corralation between Agnico Eagle and Nucletron Electronic
If you would invest 7,376 in Agnico Eagle Mines on August 28, 2024 and sell it today you would earn a total of 698.00 from holding Agnico Eagle Mines or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Nucletron Electronic Aktienges
Performance |
| Timeline |
| Agnico Eagle Mines |
| Nucletron Electronic |
Agnico Eagle and Nucletron Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Nucletron Electronic
The main advantage of trading using opposite Agnico Eagle and Nucletron Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Nucletron Electronic 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 Nucletron Electronic will offset losses from the drop in Nucletron Electronic's long position.| Agnico Eagle vs. MYFAIR GOLD P | Agnico Eagle vs. SINGAPORE AIRLINES | Agnico Eagle vs. DELTA AIR LINES | Agnico Eagle vs. ALTAIR RES INC |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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