Correlation Between Agnico Eagle and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Lundin 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 Lundin 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 Lundin Mining, you can compare the effects of market volatilities on Agnico Eagle and Lundin 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 Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Lundin Mining.
Diversification Opportunities for Agnico Eagle and Lundin Mining
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agnico and Lundin is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Lundin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin 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 Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Lundin Mining go up and down completely randomly.
Pair Corralation between Agnico Eagle and Lundin Mining
Assuming the 90 days trading horizon Agnico Eagle Mines is expected to generate 0.79 times more return on investment than Lundin Mining. However, Agnico Eagle Mines is 1.27 times less risky than Lundin Mining. It trades about 0.35 of its potential returns per unit of risk. Lundin Mining is currently generating about -0.17 per unit of risk. If you would invest 11,806 in Agnico Eagle Mines on November 3, 2024 and sell it today you would earn a total of 1,702 from holding Agnico Eagle Mines or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Lundin Mining
Performance |
| Timeline |
| Agnico Eagle Mines |
| Lundin Mining |
Agnico Eagle and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Lundin Mining
The main advantage of trading using opposite Agnico Eagle and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Lundin 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 Lundin Mining will offset losses from the drop in Lundin Mining's long position.| Agnico Eagle vs. Franco Nevada | Agnico Eagle vs. Kinross Gold Corp | Agnico Eagle vs. Barrick Gold Corp | Agnico Eagle vs. Wheaton Precious Metals |
| Lundin Mining vs. HudBay Minerals | Lundin Mining vs. First Quantum Minerals | Lundin Mining vs. Ivanhoe Mines | Lundin Mining vs. Capstone Mining Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |