Correlation Between Agnico Eagle and Computer Modelling

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

Diversification Opportunities for Agnico Eagle and Computer Modelling

-0.28

Correlation Coefficient

Agnico Eagle  Computer Modelling

Very good diversification

The 3 months correlation between Agnico and Computer is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Computer Modelling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Modelling 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 Computer Modelling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Modelling has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Computer Modelling go up and down completely randomly.

Pair Corralation between Agnico Eagle and Computer Modelling

Assuming the 90 days trading horizon Agnico Eagle Mines is expected to generate 0.56 times more return on investment than Computer Modelling. However, Agnico Eagle Mines is 1.8 times less risky than Computer Modelling. It trades about 0.18 of its potential returns per unit of risk. Computer Modelling Group is currently generating about -0.07 per unit of risk. If you would invest  14,868  in Agnico Eagle Mines on May 13, 2025 and sell it today you would earn a total of  3,797  from holding Agnico Eagle Mines or generate 25.54% return on investment over 90 days.

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

Agnico Eagle Mines  vs.  Computer Modelling Group

Agnico Eagle Mines

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agnico Eagle Mines are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Agnico Eagle displayed solid returns over the last few months and may actually be approaching a breakup point.

Computer Modelling

Risk-Adjusted Performance

Weakest

Over the last 90 days Computer Modelling Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Agnico Eagle and Computer Modelling

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

The idea behind Agnico Eagle Mines and Computer Modelling Group 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.