Correlation Between Eldorado Gold and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Mapletree Logistics 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 Mapletree Logistics 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 Mapletree Logistics Trust, you can compare the effects of market volatilities on Eldorado Gold and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Mapletree Logistics.
Diversification Opportunities for Eldorado Gold and Mapletree Logistics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eldorado and Mapletree is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Eldorado Gold and Mapletree Logistics
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 0.67 times more return on investment than Mapletree Logistics. However, Eldorado Gold Corp is 1.48 times less risky than Mapletree Logistics. It trades about 0.1 of its potential returns per unit of risk. Mapletree Logistics Trust is currently generating about -0.01 per unit of risk. If you would invest 869.00 in Eldorado Gold Corp on September 12, 2024 and sell it today you would earn a total of 851.50 from holding Eldorado Gold Corp or generate 97.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 59.21% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Eldorado Gold Corp |
| Mapletree Logistics Trust |
Eldorado Gold and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Mapletree Logistics
The main advantage of trading using opposite Eldorado Gold and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Mapletree Logistics vs. enVVeno Medical Corp | Mapletree Logistics vs. BCE Inc | Mapletree Logistics vs. Sphere Entertainment Co | Mapletree Logistics vs. Omni Health |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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