Correlation Between Agnico Eagle and Compania Cervecerias
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Compania Cervecerias 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 Compania Cervecerias 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 Compania Cervecerias Unidas, you can compare the effects of market volatilities on Agnico Eagle and Compania Cervecerias 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 Compania Cervecerias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Compania Cervecerias.
Diversification Opportunities for Agnico Eagle and Compania Cervecerias
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agnico and Compania is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Compania Cervecerias Unidas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Cervecerias 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 Compania Cervecerias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Cervecerias has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Compania Cervecerias go up and down completely randomly.
Pair Corralation between Agnico Eagle and Compania Cervecerias
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 1.78 times more return on investment than Compania Cervecerias. However, Agnico Eagle is 1.78 times more volatile than Compania Cervecerias Unidas. It trades about 0.3 of its potential returns per unit of risk. Compania Cervecerias Unidas is currently generating about 0.02 per unit of risk. If you would invest 7,736 in Agnico Eagle Mines on October 20, 2024 and sell it today you would earn a total of 767.00 from holding Agnico Eagle Mines or generate 9.91% 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. Compania Cervecerias Unidas
Performance |
| Timeline |
| Agnico Eagle Mines |
| Compania Cervecerias |
Agnico Eagle and Compania Cervecerias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Compania Cervecerias
The main advantage of trading using opposite Agnico Eagle and Compania Cervecerias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Compania Cervecerias 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 Compania Cervecerias will offset losses from the drop in Compania Cervecerias' 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 |
| Compania Cervecerias vs. Boston Beer | Compania Cervecerias vs. Molson Coors Beverage | Compania Cervecerias vs. Ambev SA ADR | Compania Cervecerias vs. Molson Coors Brewing |
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.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |