Correlation Between Coupang LLC and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Coupang LLC 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 Coupang LLC and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Eldorado Gold Corp, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Eldorado Gold.
Diversification Opportunities for Coupang LLC and Eldorado Gold
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coupang and Eldorado is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC 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 Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and Eldorado Gold go up and down completely randomly.
Pair Corralation between Coupang LLC and Eldorado Gold
Given the investment horizon of 90 days Coupang LLC is expected to generate 1.11 times more return on investment than Eldorado Gold. However, Coupang LLC is 1.11 times more volatile than Eldorado Gold Corp. It trades about -0.03 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.12 per unit of risk. If you would invest 2,595 in Coupang LLC on August 28, 2024 and sell it today you would lose (95.00) from holding Coupang LLC or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Eldorado Gold Corp
Performance |
| Timeline |
| Coupang LLC |
| Eldorado Gold Corp |
Coupang LLC and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Eldorado Gold
The main advantage of trading using opposite Coupang LLC and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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