Correlation Between Agnico Eagle and GGX Gold
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and GGX 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 GGX 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 GGX Gold Corp, you can compare the effects of market volatilities on Agnico Eagle and GGX 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 GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and GGX Gold.
Diversification Opportunities for Agnico Eagle and GGX Gold
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agnico and GGX is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and GGX Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GGX Gold Corp 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 GGX Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GGX Gold Corp has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and GGX Gold go up and down completely randomly.
Pair Corralation between Agnico Eagle and GGX Gold
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.21 times more return on investment than GGX Gold. However, Agnico Eagle Mines is 4.66 times less risky than GGX Gold. It trades about 0.1 of its potential returns per unit of risk. GGX Gold Corp is currently generating about -0.2 per unit of risk. If you would invest 7,961 in Agnico Eagle Mines on September 19, 2024 and sell it today you would earn a total of 303.00 from holding Agnico Eagle Mines or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agnico Eagle Mines vs. GGX Gold Corp
Performance |
| Timeline |
| Agnico Eagle Mines |
| GGX Gold Corp |
Agnico Eagle and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and GGX Gold
The main advantage of trading using opposite Agnico Eagle and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, GGX 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 GGX Gold will offset losses from the drop in GGX 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 |
| GGX Gold vs. GFG Resources | GGX Gold vs. Klondike Gold Corp | GGX Gold vs. Jaguar Mining | GGX Gold vs. Marvel Gold Limited |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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