Correlation Between Agnico Eagle and Denison Mines
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Denison Mines 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 Denison Mines 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 Denison Mines Corp, you can compare the effects of market volatilities on Agnico Eagle and Denison Mines 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 Denison Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Denison Mines.
Diversification Opportunities for Agnico Eagle and Denison Mines
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agnico and Denison is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Denison Mines Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denison Mines 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 Denison Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denison Mines Corp has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Denison Mines go up and down completely randomly.
Pair Corralation between Agnico Eagle and Denison Mines
Assuming the 90 days trading horizon Agnico Eagle Mines is expected to generate 0.54 times more return on investment than Denison Mines. However, Agnico Eagle Mines is 1.84 times less risky than Denison Mines. It trades about 0.32 of its potential returns per unit of risk. Denison Mines Corp is currently generating about -0.05 per unit of risk. If you would invest 16,998 in Agnico Eagle Mines on May 28, 2025 and sell it today you would earn a total of 2,316 from holding Agnico Eagle Mines or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Agnico Eagle Mines vs. Denison Mines Corp
Performance |
| Timeline |
| Agnico Eagle Mines |
| Denison Mines Corp |
Agnico Eagle and Denison Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Denison Mines
The main advantage of trading using opposite Agnico Eagle and Denison Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Denison Mines 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 Denison Mines will offset losses from the drop in Denison Mines' long position.| Agnico Eagle vs. Franco Nevada | Agnico Eagle vs. Kinross Gold Corp | Agnico Eagle vs. Barrick Gold Corp | Agnico Eagle vs. Wheaton Precious Metals |
| Denison Mines vs. NexGen Energy | Denison Mines vs. Cameco Corp | Denison Mines vs. Energy Fuels | Denison Mines vs. Denison Mines Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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