Correlation Between Eldorado Gold and MICROSOFT
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By analyzing existing cross correlation between Eldorado Gold Corp and MICROSOFT PORATION, you can compare the effects of market volatilities on Eldorado Gold and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and MICROSOFT.
Diversification Opportunities for Eldorado Gold and MICROSOFT
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eldorado and MICROSOFT is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and MICROSOFT go up and down completely randomly.
Pair Corralation between Eldorado Gold and MICROSOFT
Considering the 90-day investment horizon Eldorado Gold Corp is expected to under-perform the MICROSOFT. In addition to that, Eldorado Gold is 2.34 times more volatile than MICROSOFT PORATION. It trades about -0.12 of its total potential returns per unit of risk. MICROSOFT PORATION is currently generating about -0.01 per unit of volatility. If you would invest 6,929 in MICROSOFT PORATION on September 1, 2024 and sell it today you would lose (22.00) from holding MICROSOFT PORATION or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. MICROSOFT PORATION
Performance |
| Timeline |
| Eldorado Gold Corp |
| MICROSOFT PORATION |
Eldorado Gold and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and MICROSOFT
The main advantage of trading using opposite Eldorado Gold and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| MICROSOFT vs. Western Copper and | MICROSOFT vs. Eldorado Gold Corp | MICROSOFT vs. Chemours Co | MICROSOFT vs. Sandstorm Gold Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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