Correlation Between Eldorado Gold and 459200KY6
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By analyzing existing cross correlation between Eldorado Gold Corp and IBM 475 06 FEB 33, you can compare the effects of market volatilities on Eldorado Gold and 459200KY6 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 459200KY6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and 459200KY6.
Diversification Opportunities for Eldorado Gold and 459200KY6
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eldorado and 459200KY6 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and IBM 475 06 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBM 475 06 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 459200KY6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBM 475 06 has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and 459200KY6 go up and down completely randomly.
Pair Corralation between Eldorado Gold and 459200KY6
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 3.72 times more return on investment than 459200KY6. However, Eldorado Gold is 3.72 times more volatile than IBM 475 06 FEB 33. It trades about 0.07 of its potential returns per unit of risk. IBM 475 06 FEB 33 is currently generating about 0.02 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 | Significant |
| Accuracy | 84.24% |
| Values | Daily Returns |
Eldorado Gold Corp vs. IBM 475 06 FEB 33
Performance |
| Timeline |
| Eldorado Gold Corp |
| IBM 475 06 |
Eldorado Gold and 459200KY6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and 459200KY6
The main advantage of trading using opposite Eldorado Gold and 459200KY6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, 459200KY6 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 459200KY6 will offset losses from the drop in 459200KY6's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| 459200KY6 vs. Westrock Coffee | 459200KY6 vs. SNDL Inc | 459200KY6 vs. Constellation Brands Class | 459200KY6 vs. Willamette Valley Vineyards |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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