Correlation Between Coeur Mining and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Coeur Mining 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 Coeur Mining and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Eldorado Gold Corp, you can compare the effects of market volatilities on Coeur Mining 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 Coeur Mining with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Eldorado Gold.
Diversification Opportunities for Coeur Mining and Eldorado Gold
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coeur and Eldorado is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining 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 Coeur Mining 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 Coeur Mining 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 Coeur Mining i.e., Coeur Mining and Eldorado Gold go up and down completely randomly.
Pair Corralation between Coeur Mining and Eldorado Gold
Considering the 90-day investment horizon Coeur Mining is expected to generate 1.44 times more return on investment than Eldorado Gold. However, Coeur Mining is 1.44 times more volatile than Eldorado Gold Corp. It trades about 0.12 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.06 per unit of risk. If you would invest 577.00 in Coeur Mining on October 20, 2024 and sell it today you would earn a total of 41.00 from holding Coeur Mining or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Eldorado Gold Corp
Performance |
| Timeline |
| Coeur Mining |
| Eldorado Gold Corp |
Coeur Mining and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Eldorado Gold
The main advantage of trading using opposite Coeur Mining and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining 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.| Coeur Mining vs. Equinox Gold Corp | Coeur Mining vs. B2Gold Corp | Coeur Mining vs. Sandstorm Gold Ltd | Coeur Mining vs. Pan American Silver |
| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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