Correlation Between Eldorado Gold and Univest Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Univest Pennsylvania at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eldorado Gold and Univest Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eldorado Gold Corp and Univest Pennsylvania, you can compare the effects of market volatilities on Eldorado Gold and Univest Pennsylvania 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 Univest Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Univest Pennsylvania.
Diversification Opportunities for Eldorado Gold and Univest Pennsylvania
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eldorado and Univest is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania 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 Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Univest Pennsylvania go up and down completely randomly.
Pair Corralation between Eldorado Gold and Univest Pennsylvania
Considering the 90-day investment horizon Eldorado Gold is expected to generate 1.21 times less return on investment than Univest Pennsylvania. In addition to that, Eldorado Gold is 1.18 times more volatile than Univest Pennsylvania. It trades about 0.06 of its total potential returns per unit of risk. Univest Pennsylvania is currently generating about 0.09 per unit of volatility. If you would invest 1,836 in Univest Pennsylvania on September 12, 2024 and sell it today you would earn a total of 1,322 from holding Univest Pennsylvania or generate 72.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Univest Pennsylvania
Performance |
| Timeline |
| Eldorado Gold Corp |
| Univest Pennsylvania |
Eldorado Gold and Univest Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Univest Pennsylvania
The main advantage of trading using opposite Eldorado Gold and Univest Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Univest Pennsylvania 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 Univest Pennsylvania will offset losses from the drop in Univest Pennsylvania's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Univest Pennsylvania vs. JPMorgan Chase Co | Univest Pennsylvania vs. Citigroup | Univest Pennsylvania vs. Wells Fargo | Univest Pennsylvania vs. Toronto Dominion Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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