Correlation Between Sixt Leasing and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and Agnico Eagle Mines, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Agnico Eagle.
Diversification Opportunities for Sixt Leasing and Agnico Eagle
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sixt and Agnico is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE 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 Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and Agnico Eagle go up and down completely randomly.
Pair Corralation between Sixt Leasing and Agnico Eagle
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Agnico Eagle. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.19 times less risky than Agnico Eagle. The stock trades about -0.03 of its potential returns per unit of risk. The Agnico Eagle Mines is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,727 in Agnico Eagle Mines on August 29, 2024 and sell it today you would earn a total of 3,003 from holding Agnico Eagle Mines or generate 63.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sixt Leasing SE vs. Agnico Eagle Mines
Performance |
| Timeline |
| Sixt Leasing SE |
| Agnico Eagle Mines |
Sixt Leasing and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Agnico Eagle
The main advantage of trading using opposite Sixt Leasing and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. Aedas Homes SA | Sixt Leasing vs. Taylor Morrison Home | Sixt Leasing vs. ANGI Homeservices | Sixt Leasing vs. RETAIL FOOD GROUP |
| Agnico Eagle vs. Granite Construction | Agnico Eagle vs. Australian Agricultural | Agnico Eagle vs. Lamar Advertising | Agnico Eagle vs. CarsalesCom |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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