Correlation Between Agnico Eagle and Mawson Gold
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Mawson Gold 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 Mawson Gold 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 Mawson Gold Limited, you can compare the effects of market volatilities on Agnico Eagle and Mawson Gold 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 Mawson Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Mawson Gold.
Diversification Opportunities for Agnico Eagle and Mawson Gold
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agnico and Mawson is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Mawson Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Gold Limited 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 Mawson Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawson Gold Limited has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Mawson Gold go up and down completely randomly.
Pair Corralation between Agnico Eagle and Mawson Gold
Assuming the 90 days trading horizon Agnico Eagle Mines is expected to generate 0.43 times more return on investment than Mawson Gold. However, Agnico Eagle Mines is 2.33 times less risky than Mawson Gold. It trades about 0.35 of its potential returns per unit of risk. Mawson Gold Limited is currently generating about 0.06 per unit of risk. If you would invest 11,806 in Agnico Eagle Mines on November 3, 2024 and sell it today you would earn a total of 1,702 from holding Agnico Eagle Mines or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Mawson Gold Limited
Performance |
| Timeline |
| Agnico Eagle Mines |
| Mawson Gold Limited |
Agnico Eagle and Mawson Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Mawson Gold
The main advantage of trading using opposite Agnico Eagle and Mawson Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Mawson Gold 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 Mawson Gold will offset losses from the drop in Mawson Gold'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 |
| Mawson Gold vs. Newmont Goldcorp Corp | Mawson Gold vs. Agnico Eagle Mines | Mawson Gold vs. Barrick Gold Corp | Mawson Gold vs. Wheaton Precious Metals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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