Correlation Between Stallion Discoveries and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Stallion Discoveries 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 Stallion Discoveries and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stallion Discoveries Corp and Eldorado Gold Corp, you can compare the effects of market volatilities on Stallion Discoveries 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 Stallion Discoveries with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stallion Discoveries and Eldorado Gold.
Diversification Opportunities for Stallion Discoveries and Eldorado Gold
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stallion and Eldorado is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Stallion Discoveries Corp 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 Stallion Discoveries 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 Stallion Discoveries Corp 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 Stallion Discoveries i.e., Stallion Discoveries and Eldorado Gold go up and down completely randomly.
Pair Corralation between Stallion Discoveries and Eldorado Gold
Assuming the 90 days horizon Stallion Discoveries Corp is expected to under-perform the Eldorado Gold. In addition to that, Stallion Discoveries is 2.61 times more volatile than Eldorado Gold Corp. It trades about -0.31 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.04 per unit of volatility. If you would invest 1,646 in Eldorado Gold Corp on September 3, 2024 and sell it today you would lose (46.00) from holding Eldorado Gold Corp or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stallion Discoveries Corp vs. Eldorado Gold Corp
Performance |
| Timeline |
| Stallion Discoveries Corp |
| Eldorado Gold Corp |
Stallion Discoveries and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stallion Discoveries and Eldorado Gold
The main advantage of trading using opposite Stallion Discoveries and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stallion Discoveries 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.| Stallion Discoveries vs. Chester Mining | Stallion Discoveries vs. Jacobs Solutions | Stallion Discoveries vs. Inflection Point Acquisition | Stallion Discoveries vs. Aldel Financial II |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |