Correlation Between Agnico Eagle and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Agnico Eagle and Anglo Asian 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 Anglo Asian 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 Anglo Asian Mining, you can compare the effects of market volatilities on Agnico Eagle and Anglo Asian 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 Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agnico Eagle and Anglo Asian.
Diversification Opportunities for Agnico Eagle and Anglo Asian
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agnico and Anglo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Agnico Eagle Mines and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining 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 Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Agnico Eagle i.e., Agnico Eagle and Anglo Asian go up and down completely randomly.
Pair Corralation between Agnico Eagle and Anglo Asian
Considering the 90-day investment horizon Agnico Eagle Mines is expected to generate 0.94 times more return on investment than Anglo Asian. However, Agnico Eagle Mines is 1.07 times less risky than Anglo Asian. It trades about 0.14 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about 0.05 per unit of risk. If you would invest 13,597 in Agnico Eagle Mines on August 21, 2025 and sell it today you would earn a total of 2,897 from holding Agnico Eagle Mines or generate 21.31% 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. Anglo Asian Mining
Performance |
| Timeline |
| Agnico Eagle Mines |
| Anglo Asian Mining |
Agnico Eagle and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agnico Eagle and Anglo Asian
The main advantage of trading using opposite Agnico Eagle and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agnico Eagle position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Agnico Eagle vs. Newmont Goldcorp Corp | Agnico Eagle vs. CRH PLC ADR | Agnico Eagle vs. Barrick Mining | Agnico Eagle vs. Sherwin Williams Co |
| Anglo Asian vs. First Mining Gold | Anglo Asian vs. Gambier Gold Corp | Anglo Asian vs. Founders Metals | Anglo Asian vs. Jaguar Mining |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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