Correlation Between Eldorado Gold and Broadstone Net
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Broadstone Net 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 Broadstone Net 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 Broadstone Net Lease, you can compare the effects of market volatilities on Eldorado Gold and Broadstone Net 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 Broadstone Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Broadstone Net.
Diversification Opportunities for Eldorado Gold and Broadstone Net
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eldorado and Broadstone is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Broadstone Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadstone Net Lease 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 Broadstone Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadstone Net Lease has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Broadstone Net go up and down completely randomly.
Pair Corralation between Eldorado Gold and Broadstone Net
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 1.66 times more return on investment than Broadstone Net. However, Eldorado Gold is 1.66 times more volatile than Broadstone Net Lease. It trades about 0.31 of its potential returns per unit of risk. Broadstone Net Lease is currently generating about -0.2 per unit of risk. If you would invest 1,526 in Eldorado Gold Corp on January 13, 2025 and sell it today you would earn a total of 408.00 from holding Eldorado Gold Corp or generate 26.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Broadstone Net Lease
Performance |
| Timeline |
| Eldorado Gold Corp |
| Broadstone Net Lease |
Eldorado Gold and Broadstone Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Broadstone Net
The main advantage of trading using opposite Eldorado Gold and Broadstone Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Broadstone Net 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 Broadstone Net will offset losses from the drop in Broadstone Net's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Broadstone Net vs. Armada Hflr Pr | Broadstone Net vs. Brightspire Capital | Broadstone Net vs. Safehold | Broadstone Net vs. Essential Properties Realty |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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