Correlation Between Eldorado Gold and Mayr Melnhof
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Mayr Melnhof 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 Mayr Melnhof 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 Mayr Melnhof Karton AG, you can compare the effects of market volatilities on Eldorado Gold and Mayr Melnhof 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 Mayr Melnhof. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Mayr Melnhof.
Diversification Opportunities for Eldorado Gold and Mayr Melnhof
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eldorado and Mayr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Mayr Melnhof Karton AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayr Melnhof Karton 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 Mayr Melnhof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayr Melnhof Karton has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Mayr Melnhof go up and down completely randomly.
Pair Corralation between Eldorado Gold and Mayr Melnhof
If you would invest 1,555 in Eldorado Gold Corp on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Eldorado Gold Corp or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Mayr Melnhof Karton AG
Performance |
| Timeline |
| Eldorado Gold Corp |
| Mayr Melnhof Karton |
Eldorado Gold and Mayr Melnhof Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Mayr Melnhof
The main advantage of trading using opposite Eldorado Gold and Mayr Melnhof positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Mayr Melnhof 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 Mayr Melnhof will offset losses from the drop in Mayr Melnhof's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Mayr Melnhof vs. Aerofoam Metals | Mayr Melnhof vs. HUTCHMED DRC | Mayr Melnhof vs. Eldorado Gold Corp | Mayr Melnhof vs. Xponential Fitness |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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