Correlation Between Raytheon Technologies and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Raytheon Technologies 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 Raytheon Technologies and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raytheon Technologies and Agnico Eagle Mines, you can compare the effects of market volatilities on Raytheon Technologies 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 Raytheon Technologies with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytheon Technologies and Agnico Eagle.
Diversification Opportunities for Raytheon Technologies and Agnico Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Raytheon and Agnico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Raytheon Technologies 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 Raytheon Technologies 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 Raytheon Technologies 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 Raytheon Technologies i.e., Raytheon Technologies and Agnico Eagle go up and down completely randomly.
Pair Corralation between Raytheon Technologies and Agnico Eagle
If you would invest 5,606 in Agnico Eagle Mines on January 26, 2024 and sell it today you would earn a total of 763.00 from holding Agnico Eagle Mines or generate 13.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Raytheon Technologies vs. Agnico Eagle Mines
Performance |
Timeline |
Raytheon Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agnico Eagle Mines |
Raytheon Technologies and Agnico Eagle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Raytheon Technologies and Agnico Eagle
The main advantage of trading using opposite Raytheon Technologies and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raytheon Technologies 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.Raytheon Technologies vs. Shoe Carnival | Raytheon Technologies vs. Boot Barn Holdings | Raytheon Technologies vs. PVH Corp | Raytheon Technologies vs. Skechers USA |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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