Correlation Between Eldorado Gold and 489399AN5
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By analyzing existing cross correlation between Eldorado Gold Corp and US489399AN56, you can compare the effects of market volatilities on Eldorado Gold and 489399AN5 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 489399AN5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and 489399AN5.
Diversification Opportunities for Eldorado Gold and 489399AN5
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eldorado and 489399AN5 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and US489399AN56 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US489399AN56 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 489399AN5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US489399AN56 has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and 489399AN5 go up and down completely randomly.
Pair Corralation between Eldorado Gold and 489399AN5
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 3.69 times more return on investment than 489399AN5. However, Eldorado Gold is 3.69 times more volatile than US489399AN56. It trades about 0.05 of its potential returns per unit of risk. US489399AN56 is currently generating about 0.11 per unit of risk. If you would invest 1,249 in Eldorado Gold Corp on September 3, 2024 and sell it today you would earn a total of 330.00 from holding Eldorado Gold Corp or generate 26.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Eldorado Gold Corp vs. US489399AN56
Performance |
| Timeline |
| Eldorado Gold Corp |
| US489399AN56 |
Eldorado Gold and 489399AN5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and 489399AN5
The main advantage of trading using opposite Eldorado Gold and 489399AN5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, 489399AN5 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 489399AN5 will offset losses from the drop in 489399AN5's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| 489399AN5 vs. AEP TEX INC | 489399AN5 vs. US BANK NATIONAL | 489399AN5 vs. Jackson Financial | 489399AN5 vs. MetLife |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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