Correlation Between Eldorado Gold and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and GE Vernova 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 GE Vernova 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 GE Vernova LLC, you can compare the effects of market volatilities on Eldorado Gold and GE Vernova 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 GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and GE Vernova.
Diversification Opportunities for Eldorado Gold and GE Vernova
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eldorado and GEV is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC 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 GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and GE Vernova go up and down completely randomly.
Pair Corralation between Eldorado Gold and GE Vernova
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the GE Vernova. But the stock apears to be less risky and, when comparing its historical volatility, Eldorado Gold Corp is 1.21 times less risky than GE Vernova. The stock trades about -0.12 of its potential returns per unit of risk. The GE Vernova LLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 30,166 in GE Vernova LLC on September 1, 2024 and sell it today you would earn a total of 3,246 from holding GE Vernova LLC or generate 10.76% 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. GE Vernova LLC
Performance |
| Timeline |
| Eldorado Gold Corp |
| GE Vernova LLC |
Eldorado Gold and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and GE Vernova
The main advantage of trading using opposite Eldorado Gold and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, GE Vernova 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 GE Vernova will offset losses from the drop in GE Vernova's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| GE Vernova vs. Equinix | GE Vernova vs. Stepstone Group | GE Vernova vs. Artisan Partners Asset | GE Vernova vs. Alvarium Tiedemann Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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