Correlation Between Eldorado Gold and Oceantech Acquisitions
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Oceantech Acquisitions 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 Oceantech Acquisitions 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 Oceantech Acquisitions I, you can compare the effects of market volatilities on Eldorado Gold and Oceantech Acquisitions 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 Oceantech Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Oceantech Acquisitions.
Diversification Opportunities for Eldorado Gold and Oceantech Acquisitions
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eldorado and Oceantech is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Oceantech Acquisitions I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceantech Acquisitions 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 Oceantech Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceantech Acquisitions has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Oceantech Acquisitions go up and down completely randomly.
Pair Corralation between Eldorado Gold and Oceantech Acquisitions
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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Oceantech Acquisitions I
Performance |
| Timeline |
| Eldorado Gold Corp |
| Oceantech Acquisitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eldorado Gold and Oceantech Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Oceantech Acquisitions
The main advantage of trading using opposite Eldorado Gold and Oceantech Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Oceantech Acquisitions 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 Oceantech Acquisitions will offset losses from the drop in Oceantech Acquisitions' long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Oceantech Acquisitions vs. Amkor Technology | Oceantech Acquisitions vs. Franklin Wireless Corp | Oceantech Acquisitions vs. Uber Technologies | Oceantech Acquisitions vs. Nyxoah |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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