Correlation Between Hurco Companies and Agnico Eagle

Can any of the company-specific risk be diversified away by investing in both Hurco Companies 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 Hurco Companies and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hurco Companies and Agnico Eagle Mines, you can compare the effects of market volatilities on Hurco Companies 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 Hurco Companies with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Agnico Eagle.

Diversification Opportunities for Hurco Companies and Agnico Eagle

0.26

Correlation Coefficient

Hurco Companies  Agnico Eagle

Modest diversification

The 3 months correlation between Hurco and Agnico is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies 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 Hurco Companies 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 Hurco Companies 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 Hurco Companies i.e., Hurco Companies and Agnico Eagle go up and down completely randomly.

Pair Corralation between Hurco Companies and Agnico Eagle

Given the investment horizon of 90 days Hurco Companies is expected to under-perform the Agnico Eagle. In addition to that, Hurco Companies is 1.71 times more volatile than Agnico Eagle Mines. It trades about -0.11 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.11 per unit of volatility. If you would invest  8,563  in Agnico Eagle Mines on December 3, 2024 and sell it today you would earn a total of  1,065  from holding Agnico Eagle Mines or generate 12.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Hurco Companies  vs.  Agnico Eagle Mines

Hurco Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hurco Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Agnico Eagle Mines

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agnico Eagle Mines are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Agnico Eagle displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hurco Companies and Agnico Eagle

The main advantage of trading using opposite Hurco Companies and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies 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.

The idea behind Hurco Companies and Agnico Eagle Mines 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.