I think you're mixing things up !
A common mode signal is "average" voltage of a differential signal. A differential signal is a signal across two conductors
where when one line goes up a certain amount of voltage, the other goes down.
In formulas:
Vcmm = Common mode signal, for example 0 V or 1 V DC (it is a constant voltage)
Vsignal = the signal we want to transport, for example a 1 kHz sinewave
with an amplitude of 0.5 V
signal on positive conductor:
Vdiff_pos = Vcmm + (Vsignal / 2)
signal on negative conductor: Vdiff_neg = Vcmm - (Vsignal / 2)
So you can derive from this: Vcmm = (Vdiff_pos + Vdiff_neg) / 2
And Vsignal = Vdiff_pos - Vdiff_neg
A single ended signal is a signal referred to ground.
In a differential signal only the common mode voltage relates to ground.
If the ground voltage changes then a single ended signal will change because
it it referenced from ground.
If the ground voltage changes then a differential signal will remain the same
as it will be the common mode component that changes. But since the signal is
Vsignal = Vdiff_pos - Vdiff_neg the Vcmm is eliminated !!!
This is the main reason why differential signals are used. All disturbances
end up as a common mode and can be eliminated by subtracting the signals.
A way to transport signals is through transmission lines. Single ended transmission lines have a ground. It is however possible to make a differential transmission line with two conductors and use that for differential signals.
But transmission lines have nothing to do with how you represent a signal, if it's differential or single ended I mean.
If my understanding is correct; does that mean if one talks about
"common mode noise", he is talking about a single-ended system?
A differential receiver has to "manage" the common mode noise and although a perfect receiver will certainly achieve this, the real world receivers don't. For instance (just an example), an op-amp may be specified as having 100 dB common mode rejection but the fine detail in the data sheet tells you that this might only be at 100 Hz and at (say) 10 kHz, this has degraded to 60 dB and maybe 40 dB at 100 kHz etc..
So no, common mode noise is a big issue for both types of system.
Best Answer
No ground loop. That comes from having multiple ground connections forming a literal loop, and you don't have that. If the source's case were also connected to AGND, then it would be a loop.
There is always both capacitive and inductive coupling:
A low-impedance path to somewhere* typically overrides capacitive coupling to the point that you don't care anymore, but it does nothing for inductive coupling. So far, you've solved half of the problem for one of the two wires. The other wire may or may not be okay, depending on the output impedance of the sensor.
Inductive coupling makes the sensor's ground "wiggle", so its output also follows that "wiggle", and then adds the opposite "wiggle" to the signal return wire. So you'd think the "wiggles" would cancel, but only if the wires were to exactly coincide, which they obviously don't...unless you use coax.
* "Somewhere" is usually an AC ground, which could be the circuit reference or anything else that can hold a steady DC value.
If you leave the sensor completely floating, then the common-mode voltage becomes uncontrolled. It'll pick up lots of noise from everywhere and probably run into the input protection diodes. These built-in diodes are there for a variety of good reasons, but they also create their own noise as they switch. Plus, you're relying on the Common-Mode Rejection Ratio (CMRR) of your input stage to take that noise back out, which also isn't perfect.
A better idea:
Take a cue from professional audio and use a shielded twisted pair (STP) to carry a balanced signal. This arrangement done right will carry a microphone-level signal unamplified from stage to a mid-audience or balcony sound booth while keeping the noise inaudible:
simulate this circuit – Schematic created using CircuitLab
The upper one appears to be what you're doing, and is exactly how it ends up for a typical hand-held microphone.
The lower one is included for completeness, showing how a sensor can be powered through the same set of wires.