Correlation Between Eldorado Gold and Cleveland Cliffs
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Cleveland Cliffs 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 Cleveland Cliffs 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 Cleveland Cliffs, you can compare the effects of market volatilities on Eldorado Gold and Cleveland Cliffs 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 Cleveland Cliffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Cleveland Cliffs.
Diversification Opportunities for Eldorado Gold and Cleveland Cliffs
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eldorado and Cleveland is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Cleveland Cliffs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleveland Cliffs 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 Cleveland Cliffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleveland Cliffs has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Cleveland Cliffs go up and down completely randomly.
Pair Corralation between Eldorado Gold and Cleveland Cliffs
Considering the 90-day investment horizon Eldorado Gold Corp is expected to generate 0.57 times more return on investment than Cleveland Cliffs. However, Eldorado Gold Corp is 1.76 times less risky than Cleveland Cliffs. It trades about 0.14 of its potential returns per unit of risk. Cleveland Cliffs is currently generating about 0.03 per unit of risk. If you would invest 2,204 in Eldorado Gold Corp on August 19, 2025 and sell it today you would earn a total of 587.00 from holding Eldorado Gold Corp or generate 26.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Cleveland Cliffs
Performance |
| Timeline |
| Eldorado Gold Corp |
| Cleveland Cliffs |
Eldorado Gold and Cleveland Cliffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Cleveland Cliffs
The main advantage of trading using opposite Eldorado Gold and Cleveland Cliffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Cleveland Cliffs 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 Cleveland Cliffs will offset losses from the drop in Cleveland Cliffs' long position.| Eldorado Gold vs. New Gold | Eldorado Gold vs. SSR Mining | Eldorado Gold vs. B2Gold Corp | Eldorado Gold vs. Compania de Minas |
| Cleveland Cliffs vs. Gerdau SA ADR | Cleveland Cliffs vs. Ternium SA ADR | Cleveland Cliffs vs. Commercial Metals | Cleveland Cliffs vs. Eastman Chemical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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