Correlation Between Eldorado Gold and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Eldorado 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 Eldorado 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 Eldorado Gold Corp and Agnico Eagle Mines, you can compare the effects of market volatilities on Eldorado 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 Eldorado Gold with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Agnico Eagle.
Diversification Opportunities for Eldorado Gold and Agnico Eagle
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eldorado and Agnico is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp 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 Eldorado 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 Eldorado Gold Corp 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 Eldorado Gold i.e., Eldorado Gold and Agnico Eagle go up and down completely randomly.
Pair Corralation between Eldorado Gold and Agnico Eagle
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 1.19 times more return on investment than Agnico Eagle. However, Eldorado Gold is 1.19 times more volatile than Agnico Eagle Mines. It trades about 0.21 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.11 per unit of risk. If you would invest 1,465 in Eldorado Gold Corp on March 12, 2025 and sell it today you would earn a total of 661.00 from holding Eldorado Gold Corp or generate 45.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Agnico Eagle Mines
Performance |
| Timeline |
| Eldorado Gold Corp |
| Agnico Eagle Mines |
Eldorado Gold and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Agnico Eagle
The main advantage of trading using opposite Eldorado Gold and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado 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.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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