Correlation Between Agnico Eagle and Campbell Resources
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Campbell Resources 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 Campbell Resources 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 Campbell Resources, you can compare the effects of market volatilities on Agnico Eagle and Campbell Resources 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 Campbell Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Campbell Resources.
Diversification Opportunities for Agnico Eagle and Campbell Resources
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agnico and Campbell is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Campbell Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Resources 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 Campbell Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Resources has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Campbell Resources go up and down completely randomly.
Pair Corralation between Agnico Eagle and Campbell Resources
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.12 times more return on investment than Campbell Resources. However, Agnico Eagle Mines is 8.11 times less risky than Campbell Resources. It trades about 0.07 of its potential returns per unit of risk. Campbell Resources is currently generating about -0.15 per unit of risk. If you would invest 4,836 in Agnico Eagle Mines on August 30, 2024 and sell it today you would earn a total of 3,519 from holding Agnico Eagle Mines or generate 72.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.47% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Campbell Resources
Performance |
| Timeline |
| Agnico Eagle Mines |
| Campbell Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agnico Eagle and Campbell Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Campbell Resources
The main advantage of trading using opposite Agnico Eagle and Campbell Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Campbell Resources 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 Campbell Resources will offset losses from the drop in Campbell Resources' 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 |
| Campbell Resources vs. Maritime Resources Corp | Campbell Resources vs. Grande Portage Resources | Campbell Resources vs. Red Eagle Mining | Campbell Resources vs. Flowery Gold Mines |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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