Correlation Between Eldorado Gold and Cabo Drilling
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Cabo Drilling 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 Cabo Drilling 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 Cabo Drilling Corp, you can compare the effects of market volatilities on Eldorado Gold and Cabo Drilling 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 Cabo Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Cabo Drilling.
Diversification Opportunities for Eldorado Gold and Cabo Drilling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eldorado and Cabo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Cabo Drilling Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabo Drilling 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 Cabo Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabo Drilling Corp has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Cabo Drilling go up and down completely randomly.
Pair Corralation between Eldorado Gold and Cabo Drilling
If you would invest 0.01 in Cabo Drilling Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Cabo Drilling Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Cabo Drilling Corp
Performance |
| Timeline |
| Eldorado Gold Corp |
| Cabo Drilling Corp |
Eldorado Gold and Cabo Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Cabo Drilling
The main advantage of trading using opposite Eldorado Gold and Cabo Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Cabo Drilling 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 Cabo Drilling will offset losses from the drop in Cabo Drilling's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Cabo Drilling vs. Chimerix | Cabo Drilling vs. Centessa Pharmaceuticals PLC | Cabo Drilling vs. Noble plc | Cabo Drilling vs. Tarsus Pharmaceuticals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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