Correlation Between Future Vision and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Future Vision 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 Future Vision and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Future Vision II and Eldorado Gold Corp, you can compare the effects of market volatilities on Future Vision 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 Future Vision with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Vision and Eldorado Gold.
Diversification Opportunities for Future Vision and Eldorado Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Future and Eldorado is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Vision II 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 Future Vision 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 Future Vision II 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 Future Vision i.e., Future Vision and Eldorado Gold go up and down completely randomly.
Pair Corralation between Future Vision and Eldorado Gold
Assuming the 90 days horizon Future Vision II is expected to generate 0.04 times more return on investment than Eldorado Gold. However, Future Vision II is 23.58 times less risky than Eldorado Gold. It trades about 0.22 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 1,007 in Future Vision II on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Future Vision II or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Vision II vs. Eldorado Gold Corp
Performance |
| Timeline |
| Future Vision II |
| Eldorado Gold Corp |
Future Vision and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Vision and Eldorado Gold
The main advantage of trading using opposite Future Vision and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Vision 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.| Future Vision vs. dMY Squared Technology | Future Vision vs. YHN Acquisition I | Future Vision vs. YHN Acquisition I | Future Vision vs. PowerUp Acquisition Corp |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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