Correlation Between Eldorado Gold and Kaltura

Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Kaltura 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 Kaltura 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 Kaltura, you can compare the effects of market volatilities on Eldorado Gold and Kaltura 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 Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Kaltura.

Diversification Opportunities for Eldorado Gold and Kaltura

-0.43

Correlation Coefficient

Eldorado Gold  Kaltura

Very good diversification

The 3 months correlation between Eldorado and Kaltura is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura 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 Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Kaltura go up and down completely randomly.

Pair Corralation between Eldorado Gold and Kaltura

Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 0.74 times more return on investment than Kaltura. However, Eldorado Gold Corp is 1.35 times less risky than Kaltura. It trades about 0.14 of its potential returns per unit of risk. Kaltura is currently generating about -0.07 per unit of risk. If you would invest  1,349  in Eldorado Gold Corp on January 24, 2024 and sell it today you would earn a total of  82.00  from holding Eldorado Gold Corp or generate 6.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Eldorado Gold Corp  vs.  Kaltura

Eldorado Gold Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eldorado Gold Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Eldorado Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Kaltura

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaltura has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Eldorado Gold and Kaltura

The main advantage of trading using opposite Eldorado Gold and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Kaltura 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 Kaltura will offset losses from the drop in Kaltura's long position.

The idea behind Eldorado Gold Corp and Kaltura pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.