Correlation Between Alpha Metallurgical and Agnico-Eagle Mines

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Alpha Metallurgical and Agnico-Eagle Mines 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 Alpha Metallurgical and Agnico-Eagle Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Metallurgical Resources and Agnico-Eagle Mines, you can compare the effects of market volatilities on Alpha Metallurgical and Agnico-Eagle Mines 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 Alpha Metallurgical with a short position of Agnico-Eagle Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Metallurgical and Agnico-Eagle Mines.

Diversification Opportunities for Alpha Metallurgical and Agnico-Eagle Mines

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Alpha and Agnico-Eagle is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Metallurgical Resources 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 Alpha Metallurgical 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 Alpha Metallurgical Resources are associated (or correlated) with Agnico-Eagle Mines. 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 Alpha Metallurgical i.e., Alpha Metallurgical and Agnico-Eagle Mines go up and down completely randomly.

Pair Corralation between Alpha Metallurgical and Agnico-Eagle Mines

Considering the 90-day investment horizon Alpha Metallurgical Resources is expected to generate 2.07 times more return on investment than Agnico-Eagle Mines. However, Alpha Metallurgical is 2.07 times more volatile than Agnico-Eagle Mines. It trades about 0.15 of its potential returns per unit of risk. Agnico-Eagle Mines is currently generating about -0.03 per unit of risk. If you would invest  731.00  in Alpha Metallurgical Resources on July 8, 2022 and sell it today you would earn a total of  14,661  from holding Alpha Metallurgical Resources or generate 2005.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Alpha Metallurgical Resources  vs.  Agnico-Eagle Mines

 Performance (%) 
       Timeline  
Alpha Metallurgical 
Alpha Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Metallurgical Resources are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting primary indicators, Alpha Metallurgical reported solid returns over the last few months and may actually be approaching a breakup point.

Alpha Price Channel

Agnico-Eagle Mines 
Agnico-Eagle Performance
0 of 100
Over the last 90 days Agnico-Eagle Mines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady technical and fundamental indicators, Agnico-Eagle Mines is not utilizing all of its potentials. The new stock price chaos, may contribute to medium-term losses for the stakeholders.

Agnico-Eagle Price Channel

Alpha Metallurgical and Agnico-Eagle Mines Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Alpha Metallurgical and Agnico-Eagle Mines

The main advantage of trading using opposite Alpha Metallurgical and Agnico-Eagle Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Metallurgical position performs unexpectedly, Agnico-Eagle Mines 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 Mines will offset losses from the drop in Agnico-Eagle Mines' long position.
Alpha Metallurgical vs. Amazon Inc
The idea behind Alpha Metallurgical Resources 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.
Agnico-Eagle Mines vs. Exxon Mobil Corp
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 ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go