Correlation Between Eldorado Gold and APPLIED
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By analyzing existing cross correlation between Eldorado Gold Corp and APPLIED MATLS INC, you can compare the effects of market volatilities on Eldorado Gold and APPLIED 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 APPLIED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and APPLIED.
Diversification Opportunities for Eldorado Gold and APPLIED
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eldorado and APPLIED is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and APPLIED MATLS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLIED MATLS 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 APPLIED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLIED MATLS INC has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and APPLIED go up and down completely randomly.
Pair Corralation between Eldorado Gold and APPLIED
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 16.12 times more return on investment than APPLIED. However, Eldorado Gold is 16.12 times more volatile than APPLIED MATLS INC. It trades about 0.14 of its potential returns per unit of risk. APPLIED MATLS INC is currently generating about 0.1 per unit of risk. If you would invest 1,537 in Eldorado Gold Corp on September 13, 2024 and sell it today you would earn a total of 116.00 from holding Eldorado Gold Corp or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. APPLIED MATLS INC
Performance |
| Timeline |
| Eldorado Gold Corp |
| APPLIED MATLS INC |
Eldorado Gold and APPLIED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and APPLIED
The main advantage of trading using opposite Eldorado Gold and APPLIED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, APPLIED 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 APPLIED will offset losses from the drop in APPLIED's long position.| Eldorado Gold vs. Fortitude Gold Corp | Eldorado Gold vs. New Gold | Eldorado Gold vs. Galiano Gold | Eldorado Gold vs. GoldMining |
| APPLIED vs. Where Food Comes | APPLIED vs. Anterix | APPLIED vs. Joint Stock | APPLIED vs. Cadence Design Systems |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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