Correlation Between Eldorado Gold and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Suntory Beverage 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 Suntory Beverage 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 Suntory Beverage Food, you can compare the effects of market volatilities on Eldorado Gold and Suntory Beverage 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 Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Suntory Beverage.
Diversification Opportunities for Eldorado Gold and Suntory Beverage
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eldorado and Suntory is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Suntory Beverage go up and down completely randomly.
Pair Corralation between Eldorado Gold and Suntory Beverage
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 1.57 times more return on investment than Suntory Beverage. However, Eldorado Gold is 1.57 times more volatile than Suntory Beverage Food. It trades about 0.07 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about 0.01 per unit of risk. If you would invest 817.00 in Eldorado Gold Corp on September 2, 2024 and sell it today you would earn a total of 783.00 from holding Eldorado Gold Corp or generate 95.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Suntory Beverage Food
Performance |
| Timeline |
| Eldorado Gold Corp |
| Suntory Beverage Food |
Eldorado Gold and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Suntory Beverage
The main advantage of trading using opposite Eldorado Gold and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Suntory Beverage vs. Barfresh Food Group | Suntory Beverage vs. Fbec Worldwide | Suntory Beverage vs. Flow Beverage Corp | Suntory Beverage vs. Eq Energy Drink |
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 CEOs Directory module to screen CEOs from public companies around the world.
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