Correlation Between Agnico Eagle and Southern Arc
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Southern Arc 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 Southern Arc 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 Southern Arc Minerals, you can compare the effects of market volatilities on Agnico Eagle and Southern Arc 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 Southern Arc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Southern Arc.
Diversification Opportunities for Agnico Eagle and Southern Arc
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agnico and Southern is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Southern Arc Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Arc 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 Southern Arc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Arc Minerals has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Southern Arc go up and down completely randomly.
Pair Corralation between Agnico Eagle and Southern Arc
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 18.95 times more return on investment than Southern Arc. However, Agnico Eagle is 18.95 times more volatile than Southern Arc Minerals. It trades about 0.34 of its potential returns per unit of risk. Southern Arc Minerals is currently generating about -0.22 per unit of risk. If you would invest 8,199 in Agnico Eagle Mines on November 3, 2024 and sell it today you would earn a total of 1,095 from holding Agnico Eagle Mines or generate 13.36% 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. Southern Arc Minerals
Performance |
| Timeline |
| Agnico Eagle Mines |
| Southern Arc Minerals |
Agnico Eagle and Southern Arc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Southern Arc
The main advantage of trading using opposite Agnico Eagle and Southern Arc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Southern Arc 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 Southern Arc will offset losses from the drop in Southern Arc'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 |
| Southern Arc vs. Gladstone Investment | Southern Arc vs. NETGEAR | Southern Arc vs. Ameriprise Financial | Southern Arc vs. Arrow Electronics |
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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