Correlation Between Agnico Eagle and Capital Clean
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Capital Clean 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 Capital Clean 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 Capital Clean Energy, you can compare the effects of market volatilities on Agnico Eagle and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Capital Clean.
Diversification Opportunities for Agnico Eagle and Capital Clean
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agnico and Capital is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Capital Clean go up and down completely randomly.
Pair Corralation between Agnico Eagle and Capital Clean
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 1.03 times more return on investment than Capital Clean. However, Agnico Eagle is 1.03 times more volatile than Capital Clean Energy. It trades about 0.07 of its potential returns per unit of risk. Capital Clean Energy is currently generating about 0.04 per unit of risk. If you would invest 4,782 in Agnico Eagle Mines on August 26, 2024 and sell it today you would earn a total of 3,648 from holding Agnico Eagle Mines or generate 76.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Capital Clean Energy
Performance |
| Timeline |
| Agnico Eagle Mines |
| Capital Clean Energy |
Agnico Eagle and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Capital Clean
The main advantage of trading using opposite Agnico Eagle and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean'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 |
| Capital Clean vs. VirnetX Holding Corp | Capital Clean vs. Mill City Ventures | Capital Clean vs. Rumble Inc | Capital Clean vs. Chiba Bank Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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