Correlation Between Agnico Eagle and Everus Construction
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Everus Construction 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 Everus Construction 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 Everus Construction Group, you can compare the effects of market volatilities on Agnico Eagle and Everus Construction 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 Everus Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Everus Construction.
Diversification Opportunities for Agnico Eagle and Everus Construction
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agnico and Everus is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Everus Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everus Construction 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 Everus Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everus Construction has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Everus Construction go up and down completely randomly.
Pair Corralation between Agnico Eagle and Everus Construction
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.38 times more return on investment than Everus Construction. However, Agnico Eagle Mines is 2.65 times less risky than Everus Construction. It trades about 0.26 of its potential returns per unit of risk. Everus Construction Group is currently generating about -0.2 per unit of risk. If you would invest 7,868 in Agnico Eagle Mines on December 26, 2024 and sell it today you would earn a total of 2,607 from holding Agnico Eagle Mines or generate 33.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agnico Eagle Mines vs. Everus Construction Group
Performance |
Timeline |
Agnico Eagle Mines |
Everus Construction |
Agnico Eagle and Everus Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agnico Eagle and Everus Construction
The main advantage of trading using opposite Agnico Eagle and Everus Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Everus Construction 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 Everus Construction will offset losses from the drop in Everus Construction's long position.Agnico Eagle vs. Constellium Nv | Agnico Eagle vs. Century Aluminum | Agnico Eagle vs. China Hongqiao Group | Agnico Eagle vs. Kaiser Aluminum |
Everus Construction vs. Two Harbors Investments | Everus Construction vs. Tonopah Divide Mining | Everus Construction vs. Westshore Terminals Investment | Everus Construction vs. Magna 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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