Correlation Between Eldorado Gold and Auddia
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Auddia 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 Auddia 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 Auddia Inc, you can compare the effects of market volatilities on Eldorado Gold and Auddia 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 Auddia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Auddia.
Diversification Opportunities for Eldorado Gold and Auddia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eldorado and Auddia is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc 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 Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Auddia go up and down completely randomly.
Pair Corralation between Eldorado Gold and Auddia
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the Auddia. But the stock apears to be less risky and, when comparing its historical volatility, Eldorado Gold Corp is 7.52 times less risky than Auddia. The stock trades about -0.07 of its potential returns per unit of risk. The Auddia Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3.10 in Auddia Inc on September 3, 2024 and sell it today you would lose (1.13) from holding Auddia Inc or give up 36.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Auddia Inc
Performance |
| Timeline |
| Eldorado Gold Corp |
| Auddia Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Eldorado Gold and Auddia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Auddia
The main advantage of trading using opposite Eldorado Gold and Auddia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Auddia 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 Auddia will offset losses from the drop in Auddia's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Auddia vs. Xponential Fitness | Auddia vs. Anheuser Busch Inbev | Auddia vs. Waste Management | Auddia vs. Merit Medical Systems |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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