Correlation Between Agnico Eagle and Artemis Gold
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Artemis Gold 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 Artemis Gold 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 Artemis Gold, you can compare the effects of market volatilities on Agnico Eagle and Artemis Gold 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 Artemis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Artemis Gold.
Diversification Opportunities for Agnico Eagle and Artemis Gold
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agnico and Artemis is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold 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 Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Artemis Gold go up and down completely randomly.
Pair Corralation between Agnico Eagle and Artemis Gold
Considering the 90-day investment horizon Agnico Eagle Mines is expected to under-perform the Artemis Gold. But the stock apears to be less risky and, when comparing its historical volatility, Agnico Eagle Mines is 1.71 times less risky than Artemis Gold. The stock trades about -0.02 of its potential returns per unit of risk. The Artemis Gold is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,006 in Artemis Gold on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Artemis Gold or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Artemis Gold
Performance |
| Timeline |
| Agnico Eagle Mines |
| Artemis Gold |
Agnico Eagle and Artemis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Artemis Gold
The main advantage of trading using opposite Agnico Eagle and Artemis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Artemis Gold 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 Artemis Gold will offset losses from the drop in Artemis Gold'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 |
| Artemis Gold vs. Aurion Resources | Artemis Gold vs. Rio2 Limited | Artemis Gold vs. Palamina Corp | Artemis Gold vs. BTU Metals 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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