Correlation Between TSOGO SUN and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Agnico Eagle Mines, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Agnico Eagle.
Diversification Opportunities for TSOGO SUN and Agnico Eagle
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between TSOGO and Agnico is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING 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 TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and Agnico Eagle go up and down completely randomly.
Pair Corralation between TSOGO SUN and Agnico Eagle
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 2.94 times more return on investment than Agnico Eagle. However, TSOGO SUN is 2.94 times more volatile than Agnico Eagle Mines. It trades about 0.06 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.13 per unit of risk. If you would invest 31.00 in TSOGO SUN GAMING on September 4, 2024 and sell it today you would earn a total of 23.00 from holding TSOGO SUN GAMING or generate 74.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Agnico Eagle Mines
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Agnico Eagle Mines |
TSOGO SUN and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Agnico Eagle
The main advantage of trading using opposite TSOGO SUN and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.The idea behind TSOGO SUN GAMING and Agnico Eagle Mines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Agnico Eagle vs. PENN NATL GAMING | Agnico Eagle vs. TSOGO SUN GAMING | Agnico Eagle vs. MITSUBISHI STEEL MFG | Agnico Eagle vs. GigaMedia |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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