Correlation Between Eldorado Gold and Healthcare Services
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Healthcare Services 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 Healthcare Services 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 Healthcare Services Acquisition, you can compare the effects of market volatilities on Eldorado Gold and Healthcare Services 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 Healthcare Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Healthcare Services.
Diversification Opportunities for Eldorado Gold and Healthcare Services
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eldorado and Healthcare is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Healthcare Services Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Services 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 Healthcare Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Services has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Healthcare Services go up and down completely randomly.
Pair Corralation between Eldorado Gold and Healthcare Services
If you would invest (100.00) in Healthcare Services Acquisition on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Healthcare Services Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Healthcare Services Acquisitio
Performance |
| Timeline |
| Eldorado Gold Corp |
| Healthcare Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eldorado Gold and Healthcare Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Healthcare Services
The main advantage of trading using opposite Eldorado Gold and Healthcare Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Healthcare Services 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 Healthcare Services will offset losses from the drop in Healthcare Services' long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Healthcare Services vs. Parker Hannifin | Healthcare Services vs. Western Digital | Healthcare Services vs. Eldorado Gold Corp | Healthcare Services vs. Harmony Gold Mining |
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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