Correlation Between MSP Recovery and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both MSP Recovery 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 MSP Recovery and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSP Recovery and Agnico Eagle Mines, you can compare the effects of market volatilities on MSP Recovery 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 MSP Recovery with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSP Recovery and Agnico Eagle.
Diversification Opportunities for MSP Recovery and Agnico Eagle
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between MSP and Agnico is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MSP Recovery 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 MSP Recovery 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 MSP Recovery 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 MSP Recovery i.e., MSP Recovery and Agnico Eagle go up and down completely randomly.
Pair Corralation between MSP Recovery and Agnico Eagle
Assuming the 90 days horizon MSP Recovery is expected to generate 101.17 times more return on investment than Agnico Eagle. However, MSP Recovery is 101.17 times more volatile than Agnico Eagle Mines. It trades about 0.2 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.12 per unit of risk. If you would invest 27.00 in MSP Recovery on September 14, 2024 and sell it today you would lose (20.13) from holding MSP Recovery or give up 74.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.52% |
| Values | Daily Returns |
MSP Recovery vs. Agnico Eagle Mines
Performance |
| Timeline |
| MSP Recovery |
| Agnico Eagle Mines |
MSP Recovery and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSP Recovery and Agnico Eagle
The main advantage of trading using opposite MSP Recovery and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSP Recovery 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.| MSP Recovery vs. Agnico Eagle Mines | MSP Recovery vs. RadNet Inc | MSP Recovery vs. Teleflex Incorporated | MSP Recovery vs. Aerofoam Metals |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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