Correlation Between Eldorado Gold and Keurig Dr
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Keurig Dr 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 Keurig Dr 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 Keurig Dr Pepper, you can compare the effects of market volatilities on Eldorado Gold and Keurig Dr 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 Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Keurig Dr.
Diversification Opportunities for Eldorado Gold and Keurig Dr
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eldorado and Keurig is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig Dr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Keurig Dr go up and down completely randomly.
Pair Corralation between Eldorado Gold and Keurig Dr
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the Keurig Dr. In addition to that, Eldorado Gold is 2.1 times more volatile than Keurig Dr Pepper. It trades about -0.19 of its total potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.02 per unit of volatility. If you would invest 3,288 in Keurig Dr Pepper on August 30, 2024 and sell it today you would lose (30.00) from holding Keurig Dr Pepper or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Keurig Dr Pepper
Performance |
| Timeline |
| Eldorado Gold Corp |
| Keurig Dr Pepper |
Eldorado Gold and Keurig Dr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Keurig Dr
The main advantage of trading using opposite Eldorado Gold and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Keurig Dr 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 Keurig Dr will offset losses from the drop in Keurig Dr's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Coca Cola European Partners | Keurig Dr vs. Capital Income Builder | Keurig Dr vs. Direxion Daily FTSE |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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