Correlation Between Eldorado Gold and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Siriuspoint 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 Siriuspoint 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 Siriuspoint, you can compare the effects of market volatilities on Eldorado Gold and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Siriuspoint.
Diversification Opportunities for Eldorado Gold and Siriuspoint
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eldorado and Siriuspoint is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Siriuspoint go up and down completely randomly.
Pair Corralation between Eldorado Gold and Siriuspoint
Considering the 90-day investment horizon Eldorado Gold is expected to generate 1.28 times less return on investment than Siriuspoint. In addition to that, Eldorado Gold is 1.25 times more volatile than Siriuspoint. It trades about 0.07 of its total potential returns per unit of risk. Siriuspoint is currently generating about 0.11 per unit of volatility. If you would invest 608.00 in Siriuspoint on September 3, 2024 and sell it today you would earn a total of 934.00 from holding Siriuspoint or generate 153.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Siriuspoint
Performance |
| Timeline |
| Eldorado Gold Corp |
| Siriuspoint |
Eldorado Gold and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Siriuspoint
The main advantage of trading using opposite Eldorado Gold and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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