Correlation Between Agnico Eagle and Getty Copper
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Getty Copper 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 Getty Copper 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 Getty Copper, you can compare the effects of market volatilities on Agnico Eagle and Getty Copper 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 Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Getty Copper.
Diversification Opportunities for Agnico Eagle and Getty Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agnico and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper 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 Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Getty Copper go up and down completely randomly.
Pair Corralation between Agnico Eagle and Getty Copper
Considering the 90-day investment horizon Agnico Eagle is expected to generate 2.72 times less return on investment than Getty Copper. But when comparing it to its historical volatility, Agnico Eagle Mines is 3.86 times less risky than Getty Copper. It trades about 0.06 of its potential returns per unit of risk. Getty Copper is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.30 in Getty Copper on September 14, 2024 and sell it today you would earn a total of 2.58 from holding Getty Copper or generate 112.17% 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. Getty Copper
Performance |
| Timeline |
| Agnico Eagle Mines |
| Getty Copper |
Agnico Eagle and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Getty Copper
The main advantage of trading using opposite Agnico Eagle and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Getty Copper 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 Getty Copper will offset losses from the drop in Getty Copper's long position.| Agnico Eagle vs. Fortitude Gold Corp | Agnico Eagle vs. New Gold | Agnico Eagle vs. Galiano Gold | Agnico Eagle vs. GoldMining |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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