Correlation Between Agnico Eagle and Mural Oncology
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Mural Oncology 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 Mural Oncology 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 Mural Oncology plc, you can compare the effects of market volatilities on Agnico Eagle and Mural Oncology 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 Mural Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Mural Oncology.
Diversification Opportunities for Agnico Eagle and Mural Oncology
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agnico and Mural is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Mural Oncology plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mural Oncology plc 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 Mural Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mural Oncology plc has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Mural Oncology go up and down completely randomly.
Pair Corralation between Agnico Eagle and Mural Oncology
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.5 times more return on investment than Mural Oncology. However, Agnico Eagle Mines is 1.99 times less risky than Mural Oncology. It trades about 0.12 of its potential returns per unit of risk. Mural Oncology plc is currently generating about 0.01 per unit of risk. If you would invest 4,709 in Agnico Eagle Mines on September 14, 2024 and sell it today you would earn a total of 3,662 from holding Agnico Eagle Mines or generate 77.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Mural Oncology plc
Performance |
| Timeline |
| Agnico Eagle Mines |
| Mural Oncology plc |
Agnico Eagle and Mural Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Mural Oncology
The main advantage of trading using opposite Agnico Eagle and Mural Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Mural Oncology 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 Mural Oncology will offset losses from the drop in Mural Oncology's long position.| Agnico Eagle vs. Fortitude Gold Corp | Agnico Eagle vs. New Gold | Agnico Eagle vs. Galiano Gold | Agnico Eagle vs. GoldMining |
| Mural Oncology vs. Agnico Eagle Mines | Mural Oncology vs. Uranium Energy Corp | Mural Oncology vs. Delta Air Lines | Mural Oncology vs. Copa Holdings SA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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