Correlation Between CVW CleanTech and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech 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 CVW CleanTech and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and Agnico Eagle Mines, you can compare the effects of market volatilities on CVW CleanTech 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 CVW CleanTech with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and Agnico Eagle.
Diversification Opportunities for CVW CleanTech and Agnico Eagle
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between CVW and Agnico is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech i.e., CVW CleanTech and Agnico Eagle go up and down completely randomly.
Pair Corralation between CVW CleanTech and Agnico Eagle
Assuming the 90 days horizon CVW CleanTech is expected to under-perform the Agnico Eagle. In addition to that, CVW CleanTech is 1.9 times more volatile than Agnico Eagle Mines. It trades about -0.01 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.1 per unit of volatility. If you would invest 6,460 in Agnico Eagle Mines on September 19, 2024 and sell it today you would earn a total of 1,588 from holding Agnico Eagle Mines or generate 24.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
CVW CleanTech vs. Agnico Eagle Mines
Performance |
| Timeline |
| CVW CleanTech |
| Agnico Eagle Mines |
CVW CleanTech and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CleanTech and Agnico Eagle
The main advantage of trading using opposite CVW CleanTech and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech 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.| CVW CleanTech vs. Legacy Education | CVW CleanTech vs. Apple Inc | CVW CleanTech vs. NVIDIA | CVW CleanTech vs. Microsoft |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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