Correlation Between Agnico Eagle and Snowline Gold
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Snowline 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 Snowline 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 Snowline Gold Corp, you can compare the effects of market volatilities on Agnico Eagle and Snowline 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 Snowline Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Snowline Gold.
Diversification Opportunities for Agnico Eagle and Snowline Gold
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agnico and Snowline is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Snowline Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowline 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 Snowline Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snowline Gold Corp has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Snowline Gold go up and down completely randomly.
Pair Corralation between Agnico Eagle and Snowline Gold
Considering the 90-day investment horizon Agnico Eagle is expected to generate 1.14 times less return on investment than Snowline Gold. But when comparing it to its historical volatility, Agnico Eagle Mines is 1.95 times less risky than Snowline Gold. It trades about 0.07 of its potential returns per unit of risk. Snowline Gold Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Snowline Gold Corp on August 30, 2024 and sell it today you would earn a total of 121.00 from holding Snowline Gold Corp or generate 48.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Snowline Gold Corp
Performance |
| Timeline |
| Agnico Eagle Mines |
| Snowline Gold Corp |
Agnico Eagle and Snowline Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Snowline Gold
The main advantage of trading using opposite Agnico Eagle and Snowline Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Snowline 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 Snowline Gold will offset losses from the drop in Snowline 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 |
| Snowline Gold vs. Vertiv Holdings Co | Snowline Gold vs. Nasdaq Inc | Snowline Gold vs. McDonalds | Snowline Gold vs. Walmart |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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