Correlation Between Yamana Gold and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Yamana Gold and Agnico Eagle 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 Yamana Gold and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamana Gold and Agnico Eagle Mines, you can compare the effects of market volatilities on Yamana Gold and Agnico Eagle 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 Yamana Gold with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamana Gold and Agnico Eagle.
Diversification Opportunities for Yamana Gold and Agnico Eagle
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yamana and Agnico is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Yamana Gold and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines and Yamana Gold 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 Yamana Gold are associated (or correlated) with Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of Yamana Gold i.e., Yamana Gold and Agnico Eagle go up and down completely randomly.
Pair Corralation between Yamana Gold and Agnico Eagle
If you would invest 6,797 in Agnico Eagle Mines on September 1, 2024 and sell it today you would earn a total of 1,645 from holding Agnico Eagle Mines or generate 24.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Yamana Gold vs. Agnico Eagle Mines
Performance |
| Timeline |
| Yamana Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Agnico Eagle Mines |
Yamana Gold and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yamana Gold and Agnico Eagle
The main advantage of trading using opposite Yamana Gold and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamana Gold position performs unexpectedly, Agnico Eagle 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 Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| Yamana Gold vs. Agnico Eagle Mines | Yamana Gold vs. Wheaton Precious Metals | Yamana Gold vs. Newmont Goldcorp Corp | Yamana Gold vs. Kinross Gold |
| Agnico Eagle vs. Wheaton Precious Metals | Agnico Eagle vs. Newmont Goldcorp Corp | Agnico Eagle vs. Kinross Gold | Agnico Eagle vs. Gold Fields Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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