Correlation Between Agnico Eagle and Trisura

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Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Trisura 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 Agnico Eagle and Trisura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agnico Eagle Mines and Trisura Group, you can compare the effects of market volatilities on Agnico Eagle and Trisura 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 Agnico Eagle with a short position of Trisura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Trisura.

Diversification Opportunities for Agnico Eagle and Trisura

AgnicoTrisuraDiversified AwayAgnicoTrisuraDiversified Away100%
-0.79
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Agnico and Trisura is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Trisura Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisura Group and Agnico Eagle 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 Agnico Eagle Mines are associated (or correlated) with Trisura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisura Group has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Trisura go up and down completely randomly.

Pair Corralation between Agnico Eagle and Trisura

Assuming the 90 days trading horizon Agnico Eagle Mines is expected to generate 0.98 times more return on investment than Trisura. However, Agnico Eagle Mines is 1.02 times less risky than Trisura. It trades about 0.1 of its potential returns per unit of risk. Trisura Group is currently generating about 0.01 per unit of risk. If you would invest  6,183  in Agnico Eagle Mines on November 21, 2024 and sell it today you would earn a total of  7,611  from holding Agnico Eagle Mines or generate 123.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Agnico Eagle Mines  vs.  Trisura Group

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-100102030
JavaScript chart by amCharts 3.21.15AEM TSU
       Timeline  
Agnico Eagle Mines 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Agnico Eagle Mines are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Agnico Eagle displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb110115120125130135140145
Trisura Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Trisura Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb323436384042

Agnico Eagle and Trisura Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.07-4.55-3.02-1.50.01.663.365.056.74 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15AEM TSU
       Returns  

Pair Trading with Agnico Eagle and Trisura

The main advantage of trading using opposite Agnico Eagle and Trisura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Trisura 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 Trisura will offset losses from the drop in Trisura's long position.
The idea behind Agnico Eagle Mines and Trisura Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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