Correlation Between Eldorado Gold and ALTRIA
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By analyzing existing cross correlation between Eldorado Gold Corp and ALTRIA GROUP INC, you can compare the effects of market volatilities on Eldorado Gold and ALTRIA 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 ALTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and ALTRIA.
Diversification Opportunities for Eldorado Gold and ALTRIA
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eldorado and ALTRIA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and ALTRIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTRIA GROUP INC 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 ALTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTRIA GROUP INC has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and ALTRIA go up and down completely randomly.
Pair Corralation between Eldorado Gold and ALTRIA
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 3.53 times more return on investment than ALTRIA. However, Eldorado Gold is 3.53 times more volatile than ALTRIA GROUP INC. It trades about 0.07 of its potential returns per unit of risk. ALTRIA GROUP INC is currently generating about 0.01 per unit of risk. If you would invest 833.00 in Eldorado Gold Corp on September 3, 2024 and sell it today you would earn a total of 767.00 from holding Eldorado Gold Corp or generate 92.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Eldorado Gold Corp vs. ALTRIA GROUP INC
Performance |
| Timeline |
| Eldorado Gold Corp |
| ALTRIA GROUP INC |
Eldorado Gold and ALTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and ALTRIA
The main advantage of trading using opposite Eldorado Gold and ALTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, ALTRIA 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 ALTRIA will offset losses from the drop in ALTRIA's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| ALTRIA vs. Xponential Fitness | ALTRIA vs. Mattel Inc | ALTRIA vs. Employers Holdings | ALTRIA vs. Pekin Life Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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