Correlation Between Birkenstock Holding and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Birkenstock Holding and Agnico Eagle 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 Birkenstock Holding and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birkenstock Holding plc and Agnico Eagle Mines, you can compare the effects of market volatilities on Birkenstock Holding and Agnico Eagle 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 Birkenstock Holding with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birkenstock Holding and Agnico Eagle.
Diversification Opportunities for Birkenstock Holding and Agnico Eagle
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Birkenstock and Agnico is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Birkenstock Holding plc and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines and Birkenstock Holding 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 Birkenstock Holding plc are associated (or correlated) with Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of Birkenstock Holding i.e., Birkenstock Holding and Agnico Eagle go up and down completely randomly.
Pair Corralation between Birkenstock Holding and Agnico Eagle
Given the investment horizon of 90 days Birkenstock Holding plc is expected to under-perform the Agnico Eagle. But the stock apears to be less risky and, when comparing its historical volatility, Birkenstock Holding plc is 1.72 times less risky than Agnico Eagle. The stock trades about -0.19 of its potential returns per unit of risk. The Agnico Eagle Mines is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 8,861 in Agnico Eagle Mines on August 24, 2024 and sell it today you would lose (504.00) from holding Agnico Eagle Mines or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Birkenstock Holding plc vs. Agnico Eagle Mines
Performance |
| Timeline |
| Birkenstock Holding plc |
| Agnico Eagle Mines |
Birkenstock Holding and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birkenstock Holding and Agnico Eagle
The main advantage of trading using opposite Birkenstock Holding and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birkenstock Holding position performs unexpectedly, Agnico Eagle 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 Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| Birkenstock Holding vs. Western Acquisition Ventures | Birkenstock Holding vs. Bausch Lomb Corp | Birkenstock Holding vs. HNI Corp | Birkenstock Holding vs. Postal Realty Trust |
| Agnico Eagle vs. Gold Fields Ltd | Agnico Eagle vs. Barrick Gold Corp | Agnico Eagle vs. Pan American Silver | Agnico Eagle vs. Franco Nevada |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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