Correlation Between Agnico Eagle and Visionary Education

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

Diversification Opportunities for Agnico Eagle and Visionary Education

-0.34

Correlation Coefficient

Agnico Eagle  Visionary Education

Very good diversification

The 3 months correlation between Agnico and Visionary is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Visionary Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visionary Education 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 Visionary Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visionary Education has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Visionary Education go up and down completely randomly.

Pair Corralation between Agnico Eagle and Visionary Education

Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.21 times more return on investment than Visionary Education. However, Agnico Eagle Mines is 4.7 times less risky than Visionary Education. It trades about -0.04 of its potential returns per unit of risk. Visionary Education Technology is currently generating about -0.05 per unit of risk. If you would invest  8,221  in Agnico Eagle Mines on September 21, 2024 and sell it today you would lose (485.00) from holding Agnico Eagle Mines or give up 5.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Agnico Eagle Mines  vs.  Visionary Education Technology

Agnico Eagle Mines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agnico Eagle Mines has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Visionary Education

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Visionary Education Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Agnico Eagle and Visionary Education

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

The idea behind Agnico Eagle Mines and Visionary Education Technology 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.