Correlation Between Agnico Eagle and Goldsands Dev
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Goldsands Dev 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 Goldsands Dev 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 Goldsands Dev Co, you can compare the effects of market volatilities on Agnico Eagle and Goldsands Dev 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 Goldsands Dev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Goldsands Dev.
Diversification Opportunities for Agnico Eagle and Goldsands Dev
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agnico and Goldsands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Goldsands Dev Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldsands Dev 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 Goldsands Dev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldsands Dev has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Goldsands Dev go up and down completely randomly.
Pair Corralation between Agnico Eagle and Goldsands Dev
Considering the 90-day investment horizon Agnico Eagle is expected to generate 29.68 times less return on investment than Goldsands Dev. But when comparing it to its historical volatility, Agnico Eagle Mines is 33.57 times less risky than Goldsands Dev. It trades about 0.06 of its potential returns per unit of risk. Goldsands Dev Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Goldsands Dev Co on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Goldsands Dev Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Goldsands Dev Co
Performance |
| Timeline |
| Agnico Eagle Mines |
| Goldsands Dev |
Agnico Eagle and Goldsands Dev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Goldsands Dev
The main advantage of trading using opposite Agnico Eagle and Goldsands Dev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Goldsands Dev 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 Goldsands Dev will offset losses from the drop in Goldsands Dev's 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 |
| Goldsands Dev vs. Franco Nevada | Goldsands Dev vs. Royal Gold | Goldsands Dev vs. Agnico Eagle Mines | Goldsands Dev vs. Pan American Silver |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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