Correlation Between Fortress Transp and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Fortress Transp 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 Fortress Transp and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Transp Infra and Eldorado Gold Corp, you can compare the effects of market volatilities on Fortress Transp 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 Fortress Transp with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Transp and Eldorado Gold.
Diversification Opportunities for Fortress Transp and Eldorado Gold
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortress and Eldorado is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Transp Infra 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 Fortress Transp 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 Fortress Transp Infra 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 Fortress Transp i.e., Fortress Transp and Eldorado Gold go up and down completely randomly.
Pair Corralation between Fortress Transp and Eldorado Gold
Given the investment horizon of 90 days Fortress Transp Infra is expected to generate 1.11 times more return on investment than Eldorado Gold. However, Fortress Transp is 1.11 times more volatile than Eldorado Gold Corp. It trades about 0.37 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.04 per unit of risk. If you would invest 13,729 in Fortress Transp Infra on September 3, 2024 and sell it today you would earn a total of 3,153 from holding Fortress Transp Infra or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Transp Infra vs. Eldorado Gold Corp
Performance |
| Timeline |
| Fortress Transp Infra |
| Eldorado Gold Corp |
Fortress Transp and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Transp and Eldorado Gold
The main advantage of trading using opposite Fortress Transp and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Transp 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.| Fortress Transp vs. McGrath RentCorp | Fortress Transp vs. Custom Truck One | Fortress Transp vs. Herc Holdings | Fortress Transp vs. Alta Equipment Group |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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