Correlation Between Eldorado Gold and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Canlan Ice 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 Canlan Ice 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 Canlan Ice Sports, you can compare the effects of market volatilities on Eldorado Gold and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Canlan Ice.
Diversification Opportunities for Eldorado Gold and Canlan Ice
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eldorado and Canlan is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Canlan Ice go up and down completely randomly.
Pair Corralation between Eldorado Gold and Canlan Ice
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the Canlan Ice. In addition to that, Eldorado Gold is 10.44 times more volatile than Canlan Ice Sports. It trades about -0.14 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.22 per unit of volatility. If you would invest 294.00 in Canlan Ice Sports on October 10, 2024 and sell it today you would earn a total of 3.00 from holding Canlan Ice Sports or generate 1.02% 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. Canlan Ice Sports
Performance |
| Timeline |
| Eldorado Gold Corp |
| Canlan Ice Sports |
Eldorado Gold and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Canlan Ice
The main advantage of trading using opposite Eldorado Gold and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Canlan Ice vs. Bragg Gaming Group | Canlan Ice vs. Roblox Corp | Canlan Ice vs. BBB Foods | Canlan Ice vs. AMCON Distributing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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