Correlation Between Eldorado Gold and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Summit Environmental 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 Summit Environmental 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 Summit Environmental, you can compare the effects of market volatilities on Eldorado Gold and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Summit Environmental.
Diversification Opportunities for Eldorado Gold and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eldorado and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Summit Environmental go up and down completely randomly.
Pair Corralation between Eldorado Gold and Summit Environmental
If you would invest 1,083 in Eldorado Gold Corp on November 28, 2024 and sell it today you would earn a total of 368.50 from holding Eldorado Gold Corp or generate 34.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Summit Environmental
Performance |
| Timeline |
| Eldorado Gold Corp |
| Summit Environmental |
Eldorado Gold and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Summit Environmental
The main advantage of trading using opposite Eldorado Gold and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Summit Environmental vs. ArcelorMittal SA ADR | Summit Environmental vs. United States Steel | Summit Environmental vs. POSCO Holdings | Summit Environmental vs. Titan International |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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