Correlation Between Agnico Eagle and NTT DOCOMO
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and NTT DOCOMO 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 NTT DOCOMO 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 NTT DOCOMO INC, you can compare the effects of market volatilities on Agnico Eagle and NTT DOCOMO 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 NTT DOCOMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and NTT DOCOMO.
Diversification Opportunities for Agnico Eagle and NTT DOCOMO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agnico and NTT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and NTT DOCOMO INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTT DOCOMO INC 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 NTT DOCOMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTT DOCOMO INC has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and NTT DOCOMO go up and down completely randomly.
Pair Corralation between Agnico Eagle and NTT DOCOMO
If you would invest 5,318 in Agnico Eagle Mines on September 12, 2024 and sell it today you would earn a total of 3,292 from holding Agnico Eagle Mines or generate 61.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. NTT DOCOMO INC
Performance |
| Timeline |
| Agnico Eagle Mines |
| NTT DOCOMO INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agnico Eagle and NTT DOCOMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and NTT DOCOMO
The main advantage of trading using opposite Agnico Eagle and NTT DOCOMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, NTT DOCOMO 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 NTT DOCOMO will offset losses from the drop in NTT DOCOMO's long position.| Agnico Eagle vs. Franco Nevada | Agnico Eagle vs. Royal Gold | Agnico Eagle vs. Alamos Gold | Agnico Eagle vs. Seabridge Gold |
| NTT DOCOMO vs. Aerofoam Metals | NTT DOCOMO vs. East Africa Metals | NTT DOCOMO vs. Agnico Eagle Mines | NTT DOCOMO vs. Forsys Metals Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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