Correlation Between CHENIERE and Eldorado Gold
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By analyzing existing cross correlation between CHENIERE ENERGY PARTNERS and Eldorado Gold Corp, you can compare the effects of market volatilities on CHENIERE 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 CHENIERE with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHENIERE and Eldorado Gold.
Diversification Opportunities for CHENIERE and Eldorado Gold
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CHENIERE and Eldorado is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CHENIERE ENERGY PARTNERS 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 CHENIERE 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 CHENIERE ENERGY PARTNERS 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 CHENIERE i.e., CHENIERE and Eldorado Gold go up and down completely randomly.
Pair Corralation between CHENIERE and Eldorado Gold
Assuming the 90 days trading horizon CHENIERE is expected to generate 16.15 times less return on investment than Eldorado Gold. But when comparing it to its historical volatility, CHENIERE ENERGY PARTNERS is 5.31 times less risky than Eldorado Gold. It trades about 0.02 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 833.00 in Eldorado Gold Corp on September 3, 2024 and sell it today you would earn a total of 767.00 from holding Eldorado Gold Corp or generate 92.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
CHENIERE ENERGY PARTNERS vs. Eldorado Gold Corp
Performance |
| Timeline |
| CHENIERE ENERGY PARTNERS |
| Eldorado Gold Corp |
CHENIERE and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHENIERE and Eldorado Gold
The main advantage of trading using opposite CHENIERE and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHENIERE 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.| CHENIERE vs. Eldorado Gold Corp | CHENIERE vs. Enersys | CHENIERE vs. Digi International | CHENIERE vs. Hurco Companies |
| 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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