Correlation Between Eldorado Gold and Lion One
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Eldorado Gold and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Lion One.
Diversification Opportunities for Eldorado Gold and Lion One
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eldorado and Lion is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Lion One go up and down completely randomly.
Pair Corralation between Eldorado Gold and Lion One
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 0.61 times more return on investment than Lion One. However, Eldorado Gold Corp is 1.63 times less risky than Lion One. It trades about 0.07 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.04 per unit of risk. If you would invest 817.00 in Eldorado Gold Corp on September 2, 2024 and sell it today you would earn a total of 783.00 from holding Eldorado Gold Corp or generate 95.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Lion One Metals
Performance |
| Timeline |
| Eldorado Gold Corp |
| Lion One Metals |
Eldorado Gold and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Lion One
The main advantage of trading using opposite Eldorado Gold and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |