Correlation Between Agnico Eagle and Hycroft Mining
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Hycroft Mining 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 Hycroft Mining 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 Hycroft Mining Holding, you can compare the effects of market volatilities on Agnico Eagle and Hycroft Mining 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 Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Hycroft Mining.
Diversification Opportunities for Agnico Eagle and Hycroft Mining
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agnico and Hycroft is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding 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 Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Hycroft Mining go up and down completely randomly.
Pair Corralation between Agnico Eagle and Hycroft Mining
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.49 times more return on investment than Hycroft Mining. However, Agnico Eagle Mines is 2.04 times less risky than Hycroft Mining. It trades about 0.39 of its potential returns per unit of risk. Hycroft Mining Holding is currently generating about 0.1 per unit of risk. If you would invest 8,108 in Agnico Eagle Mines on November 4, 2024 and sell it today you would earn a total of 1,186 from holding Agnico Eagle Mines or generate 14.63% 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. Hycroft Mining Holding
Performance |
| Timeline |
| Agnico Eagle Mines |
| Hycroft Mining Holding |
Agnico Eagle and Hycroft Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Hycroft Mining
The main advantage of trading using opposite Agnico Eagle and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Hycroft Mining 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 Hycroft Mining will offset losses from the drop in Hycroft Mining'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 |
| Hycroft Mining vs. Agnico Eagle Mines | Hycroft Mining vs. B2Gold Corp | Hycroft Mining vs. Pan American Silver | Hycroft Mining vs. Gold Fields Ltd |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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