Correlation Between CDW Corp and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both CDW Corp 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 CDW Corp and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDW Corp and Agnico Eagle Mines, you can compare the effects of market volatilities on CDW Corp 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 CDW Corp with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and Agnico Eagle.
Diversification Opportunities for CDW Corp and Agnico Eagle
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between CDW and Agnico is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp 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 CDW Corp 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 CDW Corp 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 CDW Corp i.e., CDW Corp and Agnico Eagle go up and down completely randomly.
Pair Corralation between CDW Corp and Agnico Eagle
Considering the 90-day investment horizon CDW Corp is expected to generate 38.24 times less return on investment than Agnico Eagle. But when comparing it to its historical volatility, CDW Corp is 1.16 times less risky than Agnico Eagle. It trades about 0.0 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,848 in Agnico Eagle Mines on September 2, 2024 and sell it today you would earn a total of 3,594 from holding Agnico Eagle Mines or generate 74.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDW Corp vs. Agnico Eagle Mines
Performance |
| Timeline |
| CDW Corp |
| Agnico Eagle Mines |
CDW Corp and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and Agnico Eagle
The main advantage of trading using opposite CDW Corp and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp 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.| CDW Corp vs. Knowles Cor | CDW Corp vs. Ubiquiti Networks | CDW Corp vs. AmpliTech Group | CDW Corp vs. Viavi Solutions |
| Agnico Eagle vs. Wheaton Precious Metals | Agnico Eagle vs. Newmont Goldcorp Corp | Agnico Eagle vs. Kinross Gold | Agnico Eagle vs. Gold Fields 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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