Correlation Between Agnico Eagle and Hudson Technologies
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Hudson Technologies 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 Hudson Technologies 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 Hudson Technologies, you can compare the effects of market volatilities on Agnico Eagle and Hudson Technologies 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 Hudson Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Hudson Technologies.
Diversification Opportunities for Agnico Eagle and Hudson Technologies
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agnico and Hudson is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Hudson Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Technologies 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 Hudson Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Technologies has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Hudson Technologies go up and down completely randomly.
Pair Corralation between Agnico Eagle and Hudson Technologies
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.65 times more return on investment than Hudson Technologies. However, Agnico Eagle Mines is 1.54 times less risky than Hudson Technologies. It trades about 0.12 of its potential returns per unit of risk. Hudson Technologies is currently generating about -0.09 per unit of risk. If you would invest 5,003 in Agnico Eagle Mines on September 3, 2024 and sell it today you would earn a total of 3,439 from holding Agnico Eagle Mines or generate 68.74% 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. Hudson Technologies
Performance |
| Timeline |
| Agnico Eagle Mines |
| Hudson Technologies |
Agnico Eagle and Hudson Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Hudson Technologies
The main advantage of trading using opposite Agnico Eagle and Hudson Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Hudson Technologies 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 Hudson Technologies will offset losses from the drop in Hudson Technologies' 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 |
| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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