Correlation Between Mapletree Logistics and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Mapletree Logistics 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 Mapletree Logistics and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Logistics Trust and Eldorado Gold Corp, you can compare the effects of market volatilities on Mapletree Logistics 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 Mapletree Logistics with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Logistics and Eldorado Gold.
Diversification Opportunities for Mapletree Logistics and Eldorado Gold
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mapletree and Eldorado is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Logistics Trust 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 Mapletree Logistics 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 Mapletree Logistics Trust 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 Mapletree Logistics i.e., Mapletree Logistics and Eldorado Gold go up and down completely randomly.
Pair Corralation between Mapletree Logistics and Eldorado Gold
Assuming the 90 days horizon Mapletree Logistics is expected to generate 2.34 times less return on investment than Eldorado Gold. In addition to that, Mapletree Logistics is 1.54 times more volatile than Eldorado Gold Corp. It trades about 0.02 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.07 per unit of volatility. If you would invest 800.00 in Eldorado Gold Corp on September 5, 2024 and sell it today you would earn a total of 823.00 from holding Eldorado Gold Corp or generate 102.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 70.1% |
| Values | Daily Returns |
Mapletree Logistics Trust vs. Eldorado Gold Corp
Performance |
| Timeline |
| Mapletree Logistics Trust |
| Eldorado Gold Corp |
Mapletree Logistics and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Logistics and Eldorado Gold
The main advantage of trading using opposite Mapletree Logistics and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Logistics 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.| Mapletree Logistics vs. ON Semiconductor | Mapletree Logistics vs. Valens | Mapletree Logistics vs. SBM Offshore NV | Mapletree Logistics vs. KNOT Offshore Partners |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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