Correlation Between Agnico Eagle and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Grupo Simec 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 Grupo Simec 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 Grupo Simec SAB, you can compare the effects of market volatilities on Agnico Eagle and Grupo Simec 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 Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Grupo Simec.
Diversification Opportunities for Agnico Eagle and Grupo Simec
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agnico and Grupo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB 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 Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Grupo Simec go up and down completely randomly.
Pair Corralation between Agnico Eagle and Grupo Simec
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.56 times more return on investment than Grupo Simec. However, Agnico Eagle Mines is 1.8 times less risky than Grupo Simec. It trades about 0.06 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about 0.0 per unit of risk. If you would invest 5,063 in Agnico Eagle Mines on September 23, 2024 and sell it today you would earn a total of 2,753 from holding Agnico Eagle Mines or generate 54.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.53% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Grupo Simec SAB
Performance |
| Timeline |
| Agnico Eagle Mines |
| Grupo Simec SAB |
Agnico Eagle and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Grupo Simec
The main advantage of trading using opposite Agnico Eagle and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec's long position.| Agnico Eagle vs. Wheaton Precious Metals | Agnico Eagle vs. Royal Gold | Agnico Eagle vs. Sandstorm Gold Ltd | Agnico Eagle vs. Gold Fields Ltd |
| Grupo Simec vs. Wheaton Precious Metals | Grupo Simec vs. Royal Gold | Grupo Simec vs. Agnico Eagle Mines | Grupo Simec vs. Sandstorm Gold Ltd |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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