Correlation Between Excellon Resources and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Excellon Resources and Eldorado Gold 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 Excellon Resources and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excellon Resources and Eldorado Gold Corp, you can compare the effects of market volatilities on Excellon Resources and Eldorado Gold 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 Excellon Resources with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excellon Resources and Eldorado Gold.
Diversification Opportunities for Excellon Resources and Eldorado Gold
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Excellon and Eldorado is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Excellon Resources and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp and Excellon Resources 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 Excellon Resources are associated (or correlated) with Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Excellon Resources i.e., Excellon Resources and Eldorado Gold go up and down completely randomly.
Pair Corralation between Excellon Resources and Eldorado Gold
If you would invest 31.00 in Excellon Resources on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Excellon Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Excellon Resources vs. Eldorado Gold Corp
Performance |
| Timeline |
| Excellon Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eldorado Gold Corp |
Excellon Resources and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excellon Resources and Eldorado Gold
The main advantage of trading using opposite Excellon Resources and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excellon Resources position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold's long position.| Excellon Resources vs. Arrow Electronics | Excellon Resources vs. Diageo PLC ADR | Excellon Resources vs. Uber Technologies | Excellon Resources vs. Western Acquisition Ventures |
| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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