Correlation Between Hafnia and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Hafnia 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 Hafnia and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Eldorado Gold Corp, you can compare the effects of market volatilities on Hafnia 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 Hafnia with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Eldorado Gold.
Diversification Opportunities for Hafnia and Eldorado Gold
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hafnia and Eldorado is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited 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 Hafnia 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 Hafnia Limited 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 Hafnia i.e., Hafnia and Eldorado Gold go up and down completely randomly.
Pair Corralation between Hafnia and Eldorado Gold
Given the investment horizon of 90 days Hafnia is expected to generate 1.56 times less return on investment than Eldorado Gold. In addition to that, Hafnia Limited is as risky as Eldorado Gold. It trades about 0.03 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.05 per unit of volatility. If you would invest 923.00 in Eldorado Gold Corp on November 27, 2024 and sell it today you would earn a total of 488.00 from holding Eldorado Gold Corp or generate 52.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.02% |
| Values | Daily Returns |
Hafnia Limited vs. Eldorado Gold Corp
Performance |
| Timeline |
| Hafnia Limited |
| Eldorado Gold Corp |
Hafnia and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Eldorado Gold
The main advantage of trading using opposite Hafnia and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia 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.| Hafnia vs. Addus HomeCare | Hafnia vs. Zoom Video Communications | Hafnia vs. Enlight Renewable Energy | Hafnia vs. Live 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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