Correlation Between Eldorado Gold and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Coeur Mining 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 Coeur Mining 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 Coeur Mining, you can compare the effects of market volatilities on Eldorado Gold and Coeur Mining 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 Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Coeur Mining.
Diversification Opportunities for Eldorado Gold and Coeur Mining
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eldorado and Coeur is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining 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 Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Coeur Mining go up and down completely randomly.
Pair Corralation between Eldorado Gold and Coeur Mining
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the Coeur Mining. But the stock apears to be less risky and, when comparing its historical volatility, Eldorado Gold Corp is 1.44 times less risky than Coeur Mining. The stock trades about -0.06 of its potential returns per unit of risk. The Coeur Mining is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 577.00 in Coeur Mining on October 20, 2024 and sell it today you would earn a total of 41.00 from holding Coeur Mining or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Coeur Mining
Performance |
| Timeline |
| Eldorado Gold Corp |
| Coeur Mining |
Eldorado Gold and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Coeur Mining
The main advantage of trading using opposite Eldorado Gold and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Coeur Mining vs. Equinox Gold Corp | Coeur Mining vs. B2Gold Corp | Coeur Mining vs. Sandstorm Gold Ltd | Coeur Mining vs. Pan American Silver |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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