Correlation Between Eldorado Gold and CDTi Advanced
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and CDTi Advanced 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 CDTi Advanced 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 CDTi Advanced Materials, you can compare the effects of market volatilities on Eldorado Gold and CDTi Advanced 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 CDTi Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and CDTi Advanced.
Diversification Opportunities for Eldorado Gold and CDTi Advanced
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eldorado and CDTi is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and CDTi Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDTi Advanced Materials 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 CDTi Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDTi Advanced Materials has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and CDTi Advanced go up and down completely randomly.
Pair Corralation between Eldorado Gold and CDTi Advanced
If you would invest 1,196 in Eldorado Gold Corp on August 31, 2024 and sell it today you would earn a total of 392.00 from holding Eldorado Gold Corp or generate 32.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.25% |
| Values | Daily Returns |
Eldorado Gold Corp vs. CDTi Advanced Materials
Performance |
| Timeline |
| Eldorado Gold Corp |
| CDTi Advanced Materials |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eldorado Gold and CDTi Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and CDTi Advanced
The main advantage of trading using opposite Eldorado Gold and CDTi Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, CDTi Advanced 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 CDTi Advanced will offset losses from the drop in CDTi Advanced's long position.| Eldorado Gold vs. Franco Nevada | Eldorado Gold vs. Alamos Gold | Eldorado Gold vs. Seabridge Gold | Eldorado Gold vs. Wheaton Precious Metals |
| CDTi Advanced vs. Willamette Valley Vineyards | CDTi Advanced vs. Eldorado Gold Corp | CDTi Advanced vs. Barrick Gold Corp | CDTi Advanced vs. Fomento Economico Mexicano |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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