Correlation Between Agnico Eagle and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and GameStop Corp 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 GameStop Corp 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 GameStop Corp, you can compare the effects of market volatilities on Agnico Eagle and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and GameStop Corp.
Diversification Opportunities for Agnico Eagle and GameStop Corp
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agnico and GameStop is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and GameStop Corp go up and down completely randomly.
Pair Corralation between Agnico Eagle and GameStop Corp
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.57 times more return on investment than GameStop Corp. However, Agnico Eagle Mines is 1.77 times less risky than GameStop Corp. It trades about 0.23 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.11 per unit of risk. If you would invest 7,563 in Agnico Eagle Mines on September 14, 2024 and sell it today you would earn a total of 810.00 from holding Agnico Eagle Mines or generate 10.71% 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. GameStop Corp
Performance |
| Timeline |
| Agnico Eagle Mines |
| GameStop Corp |
Agnico Eagle and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and GameStop Corp
The main advantage of trading using opposite Agnico Eagle and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| Agnico Eagle vs. Fortitude Gold Corp | Agnico Eagle vs. New Gold | Agnico Eagle vs. Galiano Gold | Agnico Eagle vs. GoldMining |
| GameStop Corp vs. Arhaus Inc | GameStop Corp vs. Floor Decor Holdings | GameStop Corp vs. Live Ventures | GameStop Corp vs. Macys Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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