Correlation Between Eldorado Gold and Richmond Minerals
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Richmond Minerals 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 Richmond Minerals 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 Richmond Minerals, you can compare the effects of market volatilities on Eldorado Gold and Richmond Minerals 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 Richmond Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Richmond Minerals.
Diversification Opportunities for Eldorado Gold and Richmond Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eldorado and Richmond is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Richmond Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richmond Minerals 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 Richmond Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richmond Minerals has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Richmond Minerals go up and down completely randomly.
Pair Corralation between Eldorado Gold and Richmond Minerals
If you would invest 1,537 in Eldorado Gold Corp on September 13, 2024 and sell it today you would earn a total of 187.00 from holding Eldorado Gold Corp or generate 12.17% 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. Richmond Minerals
Performance |
| Timeline |
| Eldorado Gold Corp |
| Richmond Minerals |
Eldorado Gold and Richmond Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Richmond Minerals
The main advantage of trading using opposite Eldorado Gold and Richmond Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Richmond Minerals 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 Richmond Minerals will offset losses from the drop in Richmond Minerals' long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Richmond Minerals vs. Western Asset Investment | Richmond Minerals vs. Inflection Point Acquisition | Richmond Minerals vs. Old Republic International | Richmond Minerals vs. Eldorado 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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