Correlation Between FEMALE HEALTH and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH 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 FEMALE HEALTH and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Agnico Eagle Mines, you can compare the effects of market volatilities on FEMALE HEALTH 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 FEMALE HEALTH with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Agnico Eagle.
Diversification Opportunities for FEMALE HEALTH and Agnico Eagle
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEMALE and Agnico is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and Agnico Eagle go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Agnico Eagle
Assuming the 90 days trading horizon FEMALE HEALTH is expected to under-perform the Agnico Eagle. In addition to that, FEMALE HEALTH is 3.34 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 0.09 per unit of volatility. If you would invest 4,319 in Agnico Eagle Mines on December 4, 2024 and sell it today you would earn a total of 4,757 from holding Agnico Eagle Mines or generate 110.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Agnico Eagle Mines
Performance |
| Timeline |
| FEMALE HEALTH |
| Agnico Eagle Mines |
FEMALE HEALTH and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Agnico Eagle
The main advantage of trading using opposite FEMALE HEALTH and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH 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.| FEMALE HEALTH vs. Columbia Sportswear | FEMALE HEALTH vs. Transportadora de Gas | FEMALE HEALTH vs. MOVIE GAMES SA | FEMALE HEALTH vs. Games Workshop Group |
| Agnico Eagle vs. Ringmetall SE | Agnico Eagle vs. Calibre Mining Corp | Agnico Eagle vs. Alliance Data Systems | Agnico Eagle vs. DATAGROUP SE |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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