Correlation Between Sailfish Royalty and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Sailfish Royalty 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 Sailfish Royalty and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sailfish Royalty Corp and Agnico Eagle Mines, you can compare the effects of market volatilities on Sailfish Royalty 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 Sailfish Royalty with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sailfish Royalty and Agnico Eagle.
Diversification Opportunities for Sailfish Royalty and Agnico Eagle
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sailfish and Agnico is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sailfish Royalty Corp 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 Sailfish Royalty 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 Sailfish Royalty Corp 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 Sailfish Royalty i.e., Sailfish Royalty and Agnico Eagle go up and down completely randomly.
Pair Corralation between Sailfish Royalty and Agnico Eagle
Assuming the 90 days horizon Sailfish Royalty is expected to generate 1.24 times less return on investment than Agnico Eagle. In addition to that, Sailfish Royalty is 2.35 times more volatile than Agnico Eagle Mines. It trades about 0.12 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.34 per unit of volatility. If you would invest 5,601 in Agnico Eagle Mines on January 25, 2024 and sell it today you would earn a total of 691.00 from holding Agnico Eagle Mines or generate 12.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sailfish Royalty Corp vs. Agnico Eagle Mines
Performance |
Timeline |
Sailfish Royalty Corp |
Agnico Eagle Mines |
Sailfish Royalty and Agnico Eagle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sailfish Royalty and Agnico Eagle
The main advantage of trading using opposite Sailfish Royalty and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sailfish Royalty 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.Sailfish Royalty vs. Aurelia Metals Limited | Sailfish Royalty vs. Adriatic Metals PLC | Sailfish Royalty vs. Progressive Planet Solutions | Sailfish Royalty vs. Almonty Industries |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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