Correlation Between National Beverage and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both National Beverage 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 National Beverage and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and Eldorado Gold Corp, you can compare the effects of market volatilities on National Beverage 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 National Beverage with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Eldorado Gold.
Diversification Opportunities for National Beverage and Eldorado Gold
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Eldorado is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp 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 National Beverage 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 National Beverage Corp 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 National Beverage i.e., National Beverage and Eldorado Gold go up and down completely randomly.
Pair Corralation between National Beverage and Eldorado Gold
Given the investment horizon of 90 days National Beverage Corp is expected to generate 0.49 times more return on investment than Eldorado Gold. However, National Beverage Corp is 2.05 times less risky than Eldorado Gold. It trades about 0.26 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.12 per unit of risk. If you would invest 4,568 in National Beverage Corp on August 27, 2024 and sell it today you would earn a total of 394.00 from holding National Beverage Corp or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Beverage Corp vs. Eldorado Gold Corp
Performance |
| Timeline |
| National Beverage Corp |
| Eldorado Gold Corp |
National Beverage and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Eldorado Gold
The main advantage of trading using opposite National Beverage and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage 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.| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |