Correlation Between Agnico Eagle and Yamana Gold
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Yamana 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 Yamana 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 Yamana Gold, you can compare the effects of market volatilities on Agnico Eagle and Yamana 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 Yamana Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Yamana Gold.
Diversification Opportunities for Agnico Eagle and Yamana Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agnico and Yamana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Yamana Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamana Gold 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 Yamana Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamana Gold has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Yamana Gold go up and down completely randomly.
Pair Corralation between Agnico Eagle and Yamana Gold
If you would invest 6,797 in Agnico Eagle Mines on November 28, 2024 and sell it today you would earn a total of 2,888 from holding Agnico Eagle Mines or generate 42.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Yamana Gold
Performance |
| Timeline |
| Agnico Eagle Mines |
| Yamana Gold |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Agnico Eagle and Yamana Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Yamana Gold
The main advantage of trading using opposite Agnico Eagle and Yamana Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Yamana 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 Yamana Gold will offset losses from the drop in Yamana Gold's long position.| Agnico Eagle vs. Wheaton Precious Metals | Agnico Eagle vs. Newmont Goldcorp Corp | Agnico Eagle vs. Kinross Gold | Agnico Eagle vs. Gold Fields Ltd |
| Yamana Gold vs. Agnico Eagle Mines | Yamana Gold vs. Wheaton Precious Metals | Yamana Gold vs. Newmont Goldcorp Corp | Yamana Gold vs. Kinross Gold |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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