Correlation Between Emera Maine and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Emera Maine and Eldorado Gold 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 Emera Maine and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emera Maine PFD and Eldorado Gold Corp, you can compare the effects of market volatilities on Emera Maine and Eldorado Gold 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 Emera Maine with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emera Maine and Eldorado Gold.
Diversification Opportunities for Emera Maine and Eldorado Gold
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emera and Eldorado is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Emera Maine PFD and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp and Emera Maine 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 Emera Maine PFD are associated (or correlated) with Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Emera Maine i.e., Emera Maine and Eldorado Gold go up and down completely randomly.
Pair Corralation between Emera Maine and Eldorado Gold
If you would invest 9,825 in Emera Maine PFD on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Emera Maine PFD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Emera Maine PFD vs. Eldorado Gold Corp
Performance |
| Timeline |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eldorado Gold Corp |
Emera Maine and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emera Maine and Eldorado Gold
The main advantage of trading using opposite Emera Maine and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emera Maine position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold's long position.| Emera Maine vs. Eldorado Gold Corp | Emera Maine vs. SFL Corporation | Emera Maine vs. BBB Foods | Emera Maine vs. Chester Mining |
| Eldorado Gold vs. Constellium Nv | Eldorado Gold vs. Century Aluminum | Eldorado Gold vs. China Hongqiao Group | Eldorado Gold vs. Kaiser Aluminum |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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