Correlation Between Agnico Eagle and Eva Live

Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Eva Live 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 Eva Live 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 Eva Live, you can compare the effects of market volatilities on Agnico Eagle and Eva Live 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 Eva Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Eva Live.

Diversification Opportunities for Agnico Eagle and Eva Live

0.47

Correlation Coefficient

Agnico Eagle  Eva Live

Very weak diversification

The 3 months correlation between Agnico and Eva is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Eva Live in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eva Live 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 Eva Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eva Live has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Eva Live go up and down completely randomly.

Pair Corralation between Agnico Eagle and Eva Live

Considering the 90-day investment horizon Agnico Eagle Mines is expected to under-perform the Eva Live. But the stock apears to be less risky and, when comparing its historical volatility, Agnico Eagle Mines is 8.24 times less risky than Eva Live. The stock trades about -0.04 of its potential returns per unit of risk. The Eva Live is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  200.00  in Eva Live on October 6, 2024 and sell it today you would lose (31.00) from holding Eva Live or give up 15.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.18%
Values	Daily Returns

Agnico Eagle Mines  vs.  Eva Live

Agnico Eagle Mines

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agnico Eagle Mines are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Agnico Eagle may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Eva Live

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eva Live are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Eva Live demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agnico Eagle and Eva Live

The main advantage of trading using opposite Agnico Eagle and Eva Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Eva Live 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 Eva Live will offset losses from the drop in Eva Live's long position.

The idea behind Agnico Eagle Mines and Eva Live 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.