Correlation Between Getty Copper and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Getty Copper 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 Getty Copper and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and Agnico Eagle Mines, you can compare the effects of market volatilities on Getty Copper 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 Getty Copper with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and Agnico Eagle.
Diversification Opportunities for Getty Copper and Agnico Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Agnico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper 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 Getty Copper 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 Getty Copper 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 Getty Copper i.e., Getty Copper and Agnico Eagle go up and down completely randomly.
Pair Corralation between Getty Copper and Agnico Eagle
Assuming the 90 days horizon Getty Copper is expected to generate 3.86 times more return on investment than Agnico Eagle. However, Getty Copper is 3.86 times more volatile than Agnico Eagle Mines. It trades about 0.04 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.06 per unit of risk. If you would invest 2.30 in Getty Copper on September 14, 2024 and sell it today you would earn a total of 2.58 from holding Getty Copper or generate 112.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Copper vs. Agnico Eagle Mines
Performance |
| Timeline |
| Getty Copper |
| Agnico Eagle Mines |
Getty Copper and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and Agnico Eagle
The main advantage of trading using opposite Getty Copper and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper 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.| Getty Copper vs. Qubec Nickel Corp | Getty Copper vs. IGO Limited | Getty Copper vs. Focus Graphite | Getty Copper vs. Mineral Res |
| Agnico Eagle vs. Fortitude Gold Corp | Agnico Eagle vs. New Gold | Agnico Eagle vs. Galiano Gold | Agnico Eagle vs. GoldMining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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