Correlation Between Agnico Eagle and Integrated Drilling
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Integrated Drilling 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 Integrated Drilling 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 Integrated Drilling Equipment, you can compare the effects of market volatilities on Agnico Eagle and Integrated Drilling 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 Integrated Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Integrated Drilling.
Diversification Opportunities for Agnico Eagle and Integrated Drilling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agnico and Integrated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Integrated Drilling Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Drilling 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 Integrated Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Drilling has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Integrated Drilling go up and down completely randomly.
Pair Corralation between Agnico Eagle and Integrated Drilling
If you would invest 5.00 in Integrated Drilling Equipment on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Integrated Drilling Equipment 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. Integrated Drilling Equipment
Performance |
| Timeline |
| Agnico Eagle Mines |
| Integrated Drilling |
Agnico Eagle and Integrated Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Integrated Drilling
The main advantage of trading using opposite Agnico Eagle and Integrated Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Integrated Drilling 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 Integrated Drilling will offset losses from the drop in Integrated Drilling's long position.| Agnico Eagle vs. Franco Nevada | Agnico Eagle vs. Alamos Gold | Agnico Eagle vs. Seabridge Gold | Agnico Eagle vs. Wheaton Precious Metals |
| Integrated Drilling vs. Westinghouse Air Brake | Integrated Drilling vs. Air Lease | Integrated Drilling vs. Sphere Entertainment Co | Integrated Drilling vs. Mesa Air Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |