Correlation Between Eldorado Gold and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold and Capstone Mining 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 Capstone Mining 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 Capstone Mining Corp, you can compare the effects of market volatilities on Eldorado Gold and Capstone Mining 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 Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Capstone Mining.
Diversification Opportunities for Eldorado Gold and Capstone Mining
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eldorado and Capstone is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Capstone Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Mining Corp 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 Capstone Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Mining Corp has no effect on the direction of Eldorado Gold i.e., Eldorado Gold and Capstone Mining go up and down completely randomly.
Pair Corralation between Eldorado Gold and Capstone Mining
Assuming the 90 days trading horizon Eldorado Gold Corp is expected to generate 1.03 times more return on investment than Capstone Mining. However, Eldorado Gold is 1.03 times more volatile than Capstone Mining Corp. It trades about 0.01 of its potential returns per unit of risk. Capstone Mining Corp is currently generating about 0.0 per unit of risk. If you would invest 3,977 in Eldorado Gold Corp on August 13, 2025 and sell it today you would lose (40.00) from holding Eldorado Gold Corp or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Capstone Mining Corp
Performance |
| Timeline |
| Eldorado Gold Corp |
| Capstone Mining Corp |
Eldorado Gold and Capstone Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Capstone Mining
The main advantage of trading using opposite Eldorado Gold and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold position performs unexpectedly, Capstone Mining 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 Capstone Mining will offset losses from the drop in Capstone Mining's long position.| Eldorado Gold vs. OceanaGold | Eldorado Gold vs. New Gold | Eldorado Gold vs. Perseus Mining | Eldorado Gold vs. SSR Mining |
| Capstone Mining vs. HudBay Minerals | Capstone Mining vs. China Gold International | Capstone Mining vs. IAMGold | Capstone Mining vs. New Gold |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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