Correlation Between Agnico Eagle and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Agnico Eagle and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Sligro Food.
Diversification Opportunities for Agnico Eagle and Sligro Food
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agnico and Sligro is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Sligro Food go up and down completely randomly.
Pair Corralation between Agnico Eagle and Sligro Food
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 1.12 times more return on investment than Sligro Food. However, Agnico Eagle is 1.12 times more volatile than Sligro Food Group. It trades about 0.1 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.07 per unit of risk. If you would invest 5,413 in Agnico Eagle Mines on September 14, 2024 and sell it today you would earn a total of 2,960 from holding Agnico Eagle Mines or generate 54.68% 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. Sligro Food Group
Performance |
| Timeline |
| Agnico Eagle Mines |
| Sligro Food Group |
Agnico Eagle and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Sligro Food
The main advantage of trading using opposite Agnico Eagle and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Agnico Eagle vs. Fortitude Gold Corp | Agnico Eagle vs. New Gold | Agnico Eagle vs. Galiano Gold | Agnico Eagle vs. GoldMining |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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