Correlation Between Agnico Eagle and Codexis
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Codexis 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 Codexis 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 Codexis, you can compare the effects of market volatilities on Agnico Eagle and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Codexis.
Diversification Opportunities for Agnico Eagle and Codexis
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agnico and Codexis is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Codexis go up and down completely randomly.
Pair Corralation between Agnico Eagle and Codexis
Considering the 90-day investment horizon Agnico Eagle is expected to generate 2.0 times less return on investment than Codexis. But when comparing it to its historical volatility, Agnico Eagle Mines is 3.13 times less risky than Codexis. It trades about 0.12 of its potential returns per unit of risk. Codexis is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 228.00 in Codexis on September 3, 2024 and sell it today you would earn a total of 244.00 from holding Codexis or generate 107.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Codexis
Performance |
| Timeline |
| Agnico Eagle Mines |
| Codexis |
Agnico Eagle and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Codexis
The main advantage of trading using opposite Agnico Eagle and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' 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 |
| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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