Correlation Between Cleantech Power and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Cleantech Power 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 Cleantech Power and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleantech Power Corp and Agnico Eagle Mines, you can compare the effects of market volatilities on Cleantech Power 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 Cleantech Power with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Agnico Eagle.
Diversification Opportunities for Cleantech Power and Agnico Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Agnico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp 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 Cleantech Power 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 Cleantech Power Corp 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 Cleantech Power i.e., Cleantech Power and Agnico Eagle go up and down completely randomly.
Pair Corralation between Cleantech Power and Agnico Eagle
Assuming the 90 days horizon Cleantech Power Corp is expected to generate 44.06 times more return on investment than Agnico Eagle. However, Cleantech Power is 44.06 times more volatile than Agnico Eagle Mines. It trades about 0.1 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 5.02 in Cleantech Power Corp on September 24, 2024 and sell it today you would lose (4.43) from holding Cleantech Power Corp or give up 88.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 93.98% |
Values | Daily Returns |
Cleantech Power Corp vs. Agnico Eagle Mines
Performance |
Timeline |
Cleantech Power Corp |
Agnico Eagle Mines |
Cleantech Power and Agnico Eagle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cleantech Power and Agnico Eagle
The main advantage of trading using opposite Cleantech Power and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power 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.Cleantech Power vs. Legacy Education | ||
Cleantech Power vs. Apple Inc | ||
Cleantech Power vs. NVIDIA | ||
Cleantech Power vs. Microsoft |
Agnico Eagle vs. Wheaton Precious Metals | ||
Agnico Eagle vs. Royal Gold | ||
Agnico Eagle vs. Gold Fields Ltd | ||
Agnico Eagle vs. SSR Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |