Correlation Between Newmont and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Newmont 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 Newmont and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmont and Agnico Eagle Mines, you can compare the effects of market volatilities on Newmont 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 Newmont with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont and Agnico Eagle.
Diversification Opportunities for Newmont and Agnico Eagle
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newmont and Agnico is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Newmont 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 Newmont 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 Newmont 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 Newmont i.e., Newmont and Agnico Eagle go up and down completely randomly.
Pair Corralation between Newmont and Agnico Eagle
Assuming the 90 days horizon Newmont is expected to under-perform the Agnico Eagle. In addition to that, Newmont is 1.23 times more volatile than Agnico Eagle Mines. It trades about 0.0 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.06 per unit of volatility. If you would invest 4,760 in Agnico Eagle Mines on September 24, 2024 and sell it today you would earn a total of 2,804 from holding Agnico Eagle Mines or generate 58.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newmont vs. Agnico Eagle Mines
Performance |
| Timeline |
| Newmont |
| Agnico Eagle Mines |
Newmont and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont and Agnico Eagle
The main advantage of trading using opposite Newmont and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont 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.| Newmont vs. ZIJIN MINH UNSPADR20 | Newmont vs. Barrick Gold | Newmont vs. Franco Nevada | Newmont vs. Agnico Eagle Mines |
| Agnico Eagle vs. ZIJIN MINH UNSPADR20 | Agnico Eagle vs. Newmont | Agnico Eagle vs. Barrick Gold | Agnico Eagle vs. Franco Nevada |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |