Correlation Between Agnico Eagle and Minnova Corp
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Minnova Corp 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 Minnova Corp 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 Minnova Corp, you can compare the effects of market volatilities on Agnico Eagle and Minnova Corp 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 Minnova Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Minnova Corp.
Diversification Opportunities for Agnico Eagle and Minnova Corp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agnico and Minnova is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Minnova Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minnova Corp 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 Minnova Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minnova Corp has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Minnova Corp go up and down completely randomly.
Pair Corralation between Agnico Eagle and Minnova Corp
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.17 times more return on investment than Minnova Corp. However, Agnico Eagle Mines is 6.04 times less risky than Minnova Corp. It trades about 0.09 of its potential returns per unit of risk. Minnova Corp is currently generating about -0.13 per unit of risk. If you would invest 6,788 in Agnico Eagle Mines on August 29, 2024 and sell it today you would earn a total of 1,567 from holding Agnico Eagle Mines or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Minnova Corp
Performance |
| Timeline |
| Agnico Eagle Mines |
| Minnova Corp |
Agnico Eagle and Minnova Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Minnova Corp
The main advantage of trading using opposite Agnico Eagle and Minnova Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Minnova Corp 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 Minnova Corp will offset losses from the drop in Minnova Corp's long position.| Agnico Eagle vs. Wheaton Precious Metals | Agnico Eagle vs. Newmont Goldcorp Corp | Agnico Eagle vs. Kinross Gold | Agnico Eagle vs. Gold Fields Ltd |
| Minnova Corp vs. Blue Star Gold | Minnova Corp vs. Advance Gold Corp | Minnova Corp vs. Angkor Resources Corp | Minnova Corp vs. Advance United Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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