Correlation Between Eldorado Gold and Excellon Resources
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Excellon Resources 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 Excellon Resources 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 Excellon Resources, you can compare the effects of market volatilities on Eldorado Gold and Excellon Resources 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 Excellon Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Excellon Resources.
Diversification Opportunities for Eldorado Gold and Excellon Resources
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eldorado and Excellon is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Excellon Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excellon Resources 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 Excellon Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excellon Resources has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Excellon Resources go up and down completely randomly.
Pair Corralation between Eldorado Gold and Excellon Resources
If you would invest 1,475 in Eldorado Gold Corp on September 3, 2024 and sell it today you would earn a total of 125.00 from holding Eldorado Gold Corp or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Excellon Resources
Performance |
| Timeline |
| Eldorado Gold Corp |
| Excellon Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eldorado Gold and Excellon Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Excellon Resources
The main advantage of trading using opposite Eldorado Gold and Excellon Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Excellon Resources 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 Excellon Resources will offset losses from the drop in Excellon Resources' long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Excellon Resources vs. Arrow Electronics | Excellon Resources vs. Diageo PLC ADR | Excellon Resources vs. Uber Technologies | Excellon Resources vs. Western Acquisition Ventures |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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