Correlation Between Agnico Eagle and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Ascent Solar 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 Ascent Solar 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 Ascent Solar Technologies,, you can compare the effects of market volatilities on Agnico Eagle and Ascent Solar 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 Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Ascent Solar.
Diversification Opportunities for Agnico Eagle and Ascent Solar
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agnico and Ascent is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Ascent Solar Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascent Solar Technol 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 Ascent Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascent Solar Technol has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Ascent Solar go up and down completely randomly.
Pair Corralation between Agnico Eagle and Ascent Solar
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.2 times more return on investment than Ascent Solar. However, Agnico Eagle Mines is 4.98 times less risky than Ascent Solar. It trades about 0.13 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.11 per unit of risk. If you would invest 4,264 in Agnico Eagle Mines on August 25, 2024 and sell it today you would earn a total of 4,166 from holding Agnico Eagle Mines or generate 97.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Agnico Eagle Mines |
| Ascent Solar Technol |
Agnico Eagle and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Ascent Solar
The main advantage of trading using opposite Agnico Eagle and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Ascent Solar 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 Ascent Solar will offset losses from the drop in Ascent Solar's long position.| Agnico Eagle vs. Gold Fields Ltd | Agnico Eagle vs. Barrick Gold Corp | Agnico Eagle vs. Pan American Silver | Agnico Eagle vs. Royal Gold |
| Ascent Solar vs. Vestis | Ascent Solar vs. Agnico Eagle Mines | Ascent Solar vs. NioCorp Developments Ltd | Ascent Solar vs. Summit Materials |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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