Correlation Between Agnico Eagle and First Quantum
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and First Quantum 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 First Quantum 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 First Quantum Minerals, you can compare the effects of market volatilities on Agnico Eagle and First Quantum 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 First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and First Quantum.
Diversification Opportunities for Agnico Eagle and First Quantum
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agnico and First is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals 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 First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and First Quantum go up and down completely randomly.
Pair Corralation between Agnico Eagle and First Quantum
Assuming the 90 days trading horizon Agnico Eagle Mines is expected to generate 0.97 times more return on investment than First Quantum. However, Agnico Eagle Mines is 1.03 times less risky than First Quantum. It trades about 0.13 of its potential returns per unit of risk. First Quantum Minerals is currently generating about 0.12 per unit of risk. If you would invest 17,032 in Agnico Eagle Mines on May 31, 2025 and sell it today you would earn a total of 2,769 from holding Agnico Eagle Mines or generate 16.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. First Quantum Minerals
Performance |
| Timeline |
| Agnico Eagle Mines |
| First Quantum Minerals |
Agnico Eagle and First Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and First Quantum
The main advantage of trading using opposite Agnico Eagle and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum's long position.| Agnico Eagle vs. Franco Nevada | Agnico Eagle vs. Kinross Gold Corp | Agnico Eagle vs. Barrick Gold Corp | Agnico Eagle vs. Wheaton Precious Metals |
| First Quantum vs. Lundin Mining | First Quantum vs. HudBay Minerals | First Quantum vs. Teck Resources Limited | First Quantum vs. Ivanhoe Mines |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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