Correlation Between Eldorado Gold and Avient Corp
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Avient Corp 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 Avient Corp 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 Avient Corp, you can compare the effects of market volatilities on Eldorado Gold and Avient Corp 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 Avient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Avient Corp.
Diversification Opportunities for Eldorado Gold and Avient Corp
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eldorado and Avient is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Avient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avient Corp 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 Avient Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avient Corp has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Avient Corp go up and down completely randomly.
Pair Corralation between Eldorado Gold and Avient Corp
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the Avient Corp. In addition to that, Eldorado Gold is 1.43 times more volatile than Avient Corp. It trades about -0.09 of its total potential returns per unit of risk. Avient Corp is currently generating about 0.08 per unit of volatility. If you would invest 5,041 in Avient Corp on August 28, 2024 and sell it today you would earn a total of 276.00 from holding Avient Corp or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Avient Corp
Performance |
| Timeline |
| Eldorado Gold Corp |
| Avient Corp |
Eldorado Gold and Avient Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Avient Corp
The main advantage of trading using opposite Eldorado Gold and Avient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Avient Corp 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 Avient Corp will offset losses from the drop in Avient Corp's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |