Correlation Between Agnico Eagle and Firefinch

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Firefinch 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 Firefinch 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 Firefinch Limited, you can compare the effects of market volatilities on Agnico Eagle and Firefinch 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 Firefinch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Firefinch.

Diversification Opportunities for Agnico Eagle and Firefinch

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Agnico and Firefinch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Firefinch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firefinch Limited 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 Firefinch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firefinch Limited has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Firefinch go up and down completely randomly.

Pair Corralation between Agnico Eagle and Firefinch

If you would invest  5,359  in Agnico Eagle Mines on November 27, 2024 and sell it today you would earn a total of  4,390  from holding Agnico Eagle Mines or generate 81.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Agnico Eagle Mines  vs.  Firefinch Limited

 Performance 
       Timeline  
Agnico Eagle Mines 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Agnico Eagle Mines are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Agnico Eagle displayed solid returns over the last few months and may actually be approaching a breakup point.
Firefinch Limited 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Firefinch Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Firefinch is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Agnico Eagle and Firefinch Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agnico Eagle and Firefinch

The main advantage of trading using opposite Agnico Eagle and Firefinch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Firefinch 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 Firefinch will offset losses from the drop in Firefinch's long position.
The idea behind Agnico Eagle Mines and Firefinch Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities