Correlation Between Agnico Eagle and Latamgrowth SPAC

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

Diversification Opportunities for Agnico Eagle and Latamgrowth SPAC

-0.08

Correlation Coefficient

Agnico Eagle  Latamgrowth SPAC

Good diversification

The 3 months correlation between Agnico and Latamgrowth is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Latamgrowth SPAC Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latamgrowth SPAC Unit 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 Latamgrowth SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latamgrowth SPAC Unit has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Latamgrowth SPAC go up and down completely randomly.

Pair Corralation between Agnico Eagle and Latamgrowth SPAC

Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 7.65 times more return on investment than Latamgrowth SPAC. However, Agnico Eagle is 7.65 times more volatile than Latamgrowth SPAC Unit. It trades about 0.1 of its potential returns per unit of risk. Latamgrowth SPAC Unit is currently generating about 0.25 per unit of risk. If you would invest  7,961  in Agnico Eagle Mines on September 18, 2024 and sell it today you would earn a total of  303.00  from holding Agnico Eagle Mines or generate 3.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Agnico Eagle Mines  vs.  Latamgrowth SPAC Unit

Agnico Eagle Mines

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Agnico Eagle Mines are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Agnico Eagle is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Latamgrowth SPAC Unit

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Latamgrowth SPAC Unit are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Latamgrowth SPAC is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Agnico Eagle and Latamgrowth SPAC

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

The idea behind Agnico Eagle Mines and Latamgrowth SPAC Unit 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.