Correlation Between Eldorado Gold and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Barings BDC 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 Barings BDC 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 Barings BDC, you can compare the effects of market volatilities on Eldorado Gold and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Barings BDC.
Diversification Opportunities for Eldorado Gold and Barings BDC
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eldorado and Barings is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Barings BDC go up and down completely randomly.
Pair Corralation between Eldorado Gold and Barings BDC
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 2.07 times more return on investment than Barings BDC. However, Eldorado Gold is 2.07 times more volatile than Barings BDC. It trades about 0.05 of its potential returns per unit of risk. Barings BDC is currently generating about 0.06 per unit of risk. If you would invest 1,477 in Eldorado Gold Corp on September 12, 2024 and sell it today you would earn a total of 188.00 from holding Eldorado Gold Corp or generate 12.73% 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. Barings BDC
Performance |
| Timeline |
| Eldorado Gold Corp |
| Barings BDC |
Eldorado Gold and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Barings BDC
The main advantage of trading using opposite Eldorado Gold and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Barings BDC vs. Victory Integrity Smallmid Cap | Barings BDC vs. Hilton Worldwide Holdings | Barings BDC vs. NVIDIA | Barings BDC vs. JPMorgan Chase Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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