Correlation Between 26875PAN1 and Eldorado Gold
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By analyzing existing cross correlation between EOG RES INC and Eldorado Gold Corp, you can compare the effects of market volatilities on 26875PAN1 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 26875PAN1 with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26875PAN1 and Eldorado Gold.
Diversification Opportunities for 26875PAN1 and Eldorado Gold
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 26875PAN1 and Eldorado is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding EOG RES INC 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 26875PAN1 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 EOG RES INC 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 26875PAN1 i.e., 26875PAN1 and Eldorado Gold go up and down completely randomly.
Pair Corralation between 26875PAN1 and Eldorado Gold
Assuming the 90 days trading horizon 26875PAN1 is expected to generate 5.24 times less return on investment than Eldorado Gold. But when comparing it to its historical volatility, EOG RES INC is 3.02 times less risky than Eldorado Gold. It trades about 0.03 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,229 in Eldorado Gold Corp on September 4, 2024 and sell it today you would earn a total of 394.00 from holding Eldorado Gold Corp or generate 32.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.93% |
| Values | Daily Returns |
EOG RES INC vs. Eldorado Gold Corp
Performance |
| Timeline |
| EOG RES INC |
| Eldorado Gold Corp |
26875PAN1 and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26875PAN1 and Eldorado Gold
The main advantage of trading using opposite 26875PAN1 and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26875PAN1 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.| 26875PAN1 vs. The Travelers Companies | 26875PAN1 vs. GE Aerospace | 26875PAN1 vs. Walmart | 26875PAN1 vs. Pfizer Inc |
| Eldorado Gold vs. Constellium Nv | Eldorado Gold vs. Century Aluminum | Eldorado Gold vs. China Hongqiao Group | Eldorado Gold vs. Kaiser Aluminum |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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