Correlation Between Agnico Eagle and Peloton Minerals
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Peloton Minerals 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 Peloton Minerals 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 Peloton Minerals, you can compare the effects of market volatilities on Agnico Eagle and Peloton Minerals 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 Peloton Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Peloton Minerals.
Diversification Opportunities for Agnico Eagle and Peloton Minerals
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agnico and Peloton is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Peloton Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peloton Minerals 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 Peloton Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peloton Minerals has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Peloton Minerals go up and down completely randomly.
Pair Corralation between Agnico Eagle and Peloton Minerals
Considering the 90-day investment horizon Agnico Eagle is expected to generate 3.55 times less return on investment than Peloton Minerals. But when comparing it to its historical volatility, Agnico Eagle Mines is 4.41 times less risky than Peloton Minerals. It trades about 0.05 of its potential returns per unit of risk. Peloton Minerals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.13 in Peloton Minerals on August 29, 2024 and sell it today you would earn a total of 0.07 from holding Peloton Minerals or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Peloton Minerals
Performance |
| Timeline |
| Agnico Eagle Mines |
| Peloton Minerals |
Agnico Eagle and Peloton Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Peloton Minerals
The main advantage of trading using opposite Agnico Eagle and Peloton Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Peloton Minerals 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 Peloton Minerals will offset losses from the drop in Peloton Minerals' 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 |
| Peloton Minerals vs. BTU Metals Corp | Peloton Minerals vs. Gold Springs Resource | Peloton Minerals vs. Norsemont Mining | Peloton Minerals vs. FireFox Gold Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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