Correlation Between Agnico Eagle and Marchex
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Marchex 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 Marchex 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 Marchex, you can compare the effects of market volatilities on Agnico Eagle and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Marchex.
Diversification Opportunities for Agnico Eagle and Marchex
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agnico and Marchex is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Marchex go up and down completely randomly.
Pair Corralation between Agnico Eagle and Marchex
Considering the 90-day investment horizon Agnico Eagle Mines is expected to under-perform the Marchex. But the stock apears to be less risky and, when comparing its historical volatility, Agnico Eagle Mines is 1.49 times less risky than Marchex. The stock trades about -0.01 of its potential returns per unit of risk. The Marchex is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 177.00 in Marchex on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Marchex or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Marchex
Performance |
| Timeline |
| Agnico Eagle Mines |
| Marchex |
Agnico Eagle and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Marchex
The main advantage of trading using opposite Agnico Eagle and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex'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 |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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