Correlation Between Eldorado Gold and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Doubledown Interactive 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 Doubledown Interactive 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 Doubledown Interactive Co, you can compare the effects of market volatilities on Eldorado Gold and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Doubledown Interactive.
Diversification Opportunities for Eldorado Gold and Doubledown Interactive
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eldorado and Doubledown is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Eldorado Gold and Doubledown Interactive
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the Doubledown Interactive. In addition to that, Eldorado Gold is 1.72 times more volatile than Doubledown Interactive Co. It trades about -0.07 of its total potential returns per unit of risk. Doubledown Interactive Co is currently generating about -0.02 per unit of volatility. If you would invest 1,019 in Doubledown Interactive Co on December 6, 2024 and sell it today you would lose (16.00) from holding Doubledown Interactive Co or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Doubledown Interactive Co
Performance |
| Timeline |
| Eldorado Gold Corp |
| Doubledown Interactive |
Eldorado Gold and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Doubledown Interactive
The main advantage of trading using opposite Eldorado Gold and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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