Correlation Between Fidelity National and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Fidelity National 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 Fidelity National and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Information and Agnico Eagle Mines, you can compare the effects of market volatilities on Fidelity National 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 Fidelity National with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Agnico Eagle.
Diversification Opportunities for Fidelity National and Agnico Eagle
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Agnico is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information 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 Fidelity National 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 Fidelity National Information 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 Fidelity National i.e., Fidelity National and Agnico Eagle go up and down completely randomly.
Pair Corralation between Fidelity National and Agnico Eagle
Assuming the 90 days trading horizon Fidelity National Information is expected to under-perform the Agnico Eagle. In addition to that, Fidelity National is 2.18 times more volatile than Agnico Eagle Mines. It trades about -0.13 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.2 per unit of volatility. If you would invest 8,410 in Agnico Eagle Mines on November 28, 2024 and sell it today you would earn a total of 706.00 from holding Agnico Eagle Mines or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. Agnico Eagle Mines
Performance |
| Timeline |
| Fidelity National |
| Agnico Eagle Mines |
Fidelity National and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Agnico Eagle
The main advantage of trading using opposite Fidelity National and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National 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.| Fidelity National vs. China Telecom | Fidelity National vs. Singapore Telecommunications Limited | Fidelity National vs. Ribbon Communications | Fidelity National vs. Broadridge Financial Solutions |
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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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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