Correlation Between Eldorado Gold and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Electrovaya Common 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 Electrovaya Common 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 Electrovaya Common Shares, you can compare the effects of market volatilities on Eldorado Gold and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Electrovaya Common.
Diversification Opportunities for Eldorado Gold and Electrovaya Common
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eldorado and Electrovaya is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Electrovaya Common go up and down completely randomly.
Pair Corralation between Eldorado Gold and Electrovaya Common
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 1.12 times more return on investment than Electrovaya Common. However, Eldorado Gold is 1.12 times more volatile than Electrovaya Common Shares. It trades about -0.04 of its potential returns per unit of risk. Electrovaya Common Shares is currently generating about -0.17 per unit of risk. If you would invest 1,515 in Eldorado Gold Corp on November 28, 2024 and sell it today you would lose (70.00) from holding Eldorado Gold Corp or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Electrovaya Common Shares
Performance |
| Timeline |
| Eldorado Gold Corp |
| Electrovaya Common Shares |
Eldorado Gold and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Electrovaya Common
The main advantage of trading using opposite Eldorado Gold and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Electrovaya Common vs. Brandywine Realty Trust | Electrovaya Common vs. Senmiao Technology | Electrovaya Common vs. MGP Ingredients | Electrovaya Common vs. Constellation Brands Class |
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 CEOs Directory module to screen CEOs from public companies around the world.
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