Correlation Between Cleveland Cliffs and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Cleveland Cliffs 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 Cleveland Cliffs and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleveland Cliffs and Eldorado Gold Corp, you can compare the effects of market volatilities on Cleveland Cliffs 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 Cleveland Cliffs with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleveland Cliffs and Eldorado Gold.
Diversification Opportunities for Cleveland Cliffs and Eldorado Gold
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cleveland and Eldorado is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cleveland Cliffs 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 Cleveland Cliffs 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 Cleveland Cliffs 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 Cleveland Cliffs i.e., Cleveland Cliffs and Eldorado Gold go up and down completely randomly.
Pair Corralation between Cleveland Cliffs and Eldorado Gold
Considering the 90-day investment horizon Cleveland Cliffs is expected to generate 3.66 times less return on investment than Eldorado Gold. In addition to that, Cleveland Cliffs is 1.74 times more volatile than Eldorado Gold Corp. It trades about 0.01 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.09 per unit of volatility. If you would invest 1,656 in Eldorado Gold Corp on August 19, 2025 and sell it today you would earn a total of 1,134 from holding Eldorado Gold Corp or generate 68.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleveland Cliffs vs. Eldorado Gold Corp
Performance |
| Timeline |
| Cleveland Cliffs |
| Eldorado Gold Corp |
Cleveland Cliffs and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleveland Cliffs and Eldorado Gold
The main advantage of trading using opposite Cleveland Cliffs and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleveland Cliffs 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.| Cleveland Cliffs vs. Gerdau SA ADR | Cleveland Cliffs vs. Ternium SA ADR | Cleveland Cliffs vs. Commercial Metals | Cleveland Cliffs vs. Eastman Chemical |
| Eldorado Gold vs. New Gold | Eldorado Gold vs. SSR Mining | Eldorado Gold vs. B2Gold Corp | Eldorado Gold vs. Compania de Minas |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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