Correlation Between Agnico Eagle and Asure Software
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Asure Software 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 Asure Software 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 Asure Software, you can compare the effects of market volatilities on Agnico Eagle and Asure Software 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 Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Asure Software.
Diversification Opportunities for Agnico Eagle and Asure Software
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agnico and Asure is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software 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 Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Asure Software go up and down completely randomly.
Pair Corralation between Agnico Eagle and Asure Software
Considering the 90-day investment horizon Agnico Eagle Mines is expected to under-perform the Asure Software. But the stock apears to be less risky and, when comparing its historical volatility, Agnico Eagle Mines is 1.42 times less risky than Asure Software. The stock trades about -0.01 of its potential returns per unit of risk. The Asure Software is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 851.00 in Asure Software on September 2, 2024 and sell it today you would earn a total of 128.00 from holding Asure Software or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Asure Software
Performance |
| Timeline |
| Agnico Eagle Mines |
| Asure Software |
Agnico Eagle and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Asure Software
The main advantage of trading using opposite Agnico Eagle and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Asure Software 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 Asure Software will offset losses from the drop in Asure Software'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 |
| Asure Software vs. Ke Holdings | Asure Software vs. nCino Inc | Asure Software vs. Kingsoft Cloud Holdings | Asure Software vs. Jfrog |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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