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
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hurco and Agnico is -0.27. 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 1.85 times more volatile than Agnico Eagle Mines. It trades about -0.08 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.29 per unit of volatility. If you would invest 7,832 in Agnico Eagle Mines on December 27, 2024 and sell it today you would earn a total of 2,930 from holding Agnico Eagle Mines or generate 37.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Hurco Companies vs. Agnico Eagle Mines
Performance |
Timeline |
Hurco Companies |
Agnico Eagle Mines |
Hurco Companies and Agnico Eagle Volatility Contrast
Predicted Return Density |
Returns |
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.Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
Agnico Eagle vs. Constellium Nv | Agnico Eagle vs. Century Aluminum | Agnico Eagle vs. China Hongqiao Group | Agnico Eagle vs. Kaiser Aluminum |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |