Correlation Between Eldorado Gold and Alleghany
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Alleghany 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 Eldorado Gold and Alleghany into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eldorado Gold Corp and Alleghany, you can compare the effects of market volatilities on Eldorado Gold and Alleghany 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 Eldorado Gold with a short position of Alleghany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Alleghany.
Diversification Opportunities for Eldorado Gold and Alleghany
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eldorado and Alleghany is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Alleghany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alleghany and Eldorado Gold 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 Eldorado Gold Corp are associated (or correlated) with Alleghany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alleghany has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Alleghany go up and down completely randomly.
Pair Corralation between Eldorado Gold and Alleghany
If you would invest 1,130 in Eldorado Gold Corp on January 21, 2024 and sell it today you would earn a total of 374.00 from holding Eldorado Gold Corp or generate 33.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Alleghany
Performance |
| Timeline |
| Eldorado Gold Corp |
| Alleghany |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eldorado Gold and Alleghany Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Alleghany
The main advantage of trading using opposite Eldorado Gold and Alleghany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Alleghany 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 Alleghany will offset losses from the drop in Alleghany's long position.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| Alleghany vs. Asure Software | Alleghany vs. Fevertree Drinks Plc | Alleghany vs. Paysafe | Alleghany vs. Fernhill Beverage |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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