Correlation Between Agnico Eagle and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Sellas Life 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 Sellas Life 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 Sellas Life Sciences, you can compare the effects of market volatilities on Agnico Eagle and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Sellas Life.
Diversification Opportunities for Agnico Eagle and Sellas Life
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agnico and Sellas is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Sellas Life go up and down completely randomly.
Pair Corralation between Agnico Eagle and Sellas Life
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.75 times more return on investment than Sellas Life. However, Agnico Eagle Mines is 1.34 times less risky than Sellas Life. It trades about -0.04 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about -0.05 per unit of risk. If you would invest 8,676 in Agnico Eagle Mines on August 27, 2024 and sell it today you would lose (246.00) from holding Agnico Eagle Mines or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Sellas Life Sciences
Performance |
| Timeline |
| Agnico Eagle Mines |
| Sellas Life Sciences |
Agnico Eagle and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Sellas Life
The main advantage of trading using opposite Agnico Eagle and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life'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 |
| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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