Correlation Between Eldorado Gold and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and JBG SMITH 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 JBG SMITH 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 JBG SMITH Properties, you can compare the effects of market volatilities on Eldorado Gold and JBG SMITH 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 JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and JBG SMITH.
Diversification Opportunities for Eldorado Gold and JBG SMITH
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eldorado and JBG is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties 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 JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and JBG SMITH go up and down completely randomly.
Pair Corralation between Eldorado Gold and JBG SMITH
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the JBG SMITH. In addition to that, Eldorado Gold is 1.29 times more volatile than JBG SMITH Properties. It trades about -0.09 of its total potential returns per unit of risk. JBG SMITH Properties is currently generating about -0.04 per unit of volatility. If you would invest 1,737 in JBG SMITH Properties on August 28, 2024 and sell it today you would lose (70.00) from holding JBG SMITH Properties or give up 4.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. JBG SMITH Properties
Performance |
| Timeline |
| Eldorado Gold Corp |
| JBG SMITH Properties |
Eldorado Gold and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and JBG SMITH
The main advantage of trading using opposite Eldorado Gold and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |