Correlation Between Eldorado Gold and IsoRay
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and IsoRay 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 IsoRay 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 IsoRay Inc, you can compare the effects of market volatilities on Eldorado Gold and IsoRay 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 IsoRay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and IsoRay.
Diversification Opportunities for Eldorado Gold and IsoRay
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eldorado and IsoRay is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and IsoRay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IsoRay Inc 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 IsoRay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IsoRay Inc has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and IsoRay go up and down completely randomly.
Pair Corralation between Eldorado Gold and IsoRay
If you would invest 1,109 in Eldorado Gold Corp on September 12, 2024 and sell it today you would earn a total of 556.00 from holding Eldorado Gold Corp or generate 50.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.28% |
| Values | Daily Returns |
Eldorado Gold Corp vs. IsoRay Inc
Performance |
| Timeline |
| Eldorado Gold Corp |
| IsoRay Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eldorado Gold and IsoRay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and IsoRay
The main advantage of trading using opposite Eldorado Gold and IsoRay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, IsoRay 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 IsoRay will offset losses from the drop in IsoRay's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| IsoRay vs. Eldorado Gold Corp | IsoRay vs. Saia Inc | IsoRay vs. Mesa Air Group | IsoRay vs. ACG Metals Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |