Correlation Between Nabors Industries and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Nabors Industries 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 Nabors Industries and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and Eldorado Gold Corp, you can compare the effects of market volatilities on Nabors Industries 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 Nabors Industries with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and Eldorado Gold.
Diversification Opportunities for Nabors Industries and Eldorado Gold
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nabors and Eldorado is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries 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 Nabors Industries 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 Nabors Industries 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 Nabors Industries i.e., Nabors Industries and Eldorado Gold go up and down completely randomly.
Pair Corralation between Nabors Industries and Eldorado Gold
Considering the 90-day investment horizon Nabors Industries is expected to generate 1.14 times more return on investment than Eldorado Gold. However, Nabors Industries is 1.14 times more volatile than Eldorado Gold Corp. It trades about -0.01 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.18 per unit of risk. If you would invest 7,465 in Nabors Industries on August 31, 2024 and sell it today you would lose (130.00) from holding Nabors Industries or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nabors Industries vs. Eldorado Gold Corp
Performance |
| Timeline |
| Nabors Industries |
| Eldorado Gold Corp |
Nabors Industries and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and Eldorado Gold
The main advantage of trading using opposite Nabors Industries and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries 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.| Nabors Industries vs. Helmerich and Payne | Nabors Industries vs. Precision Drilling | Nabors Industries vs. Seadrill Limited | Nabors Industries vs. Borr Drilling |
| Eldorado Gold vs. Franco Nevada | Eldorado Gold vs. Alamos Gold | Eldorado Gold vs. Seabridge Gold | Eldorado Gold vs. Osisko Gold Ro |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |