Correlation Between Intermap Technologies and Eldorado Gold

Can any of the company-specific risk be diversified away by investing in both Intermap Technologies 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 Intermap Technologies and Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intermap Technologies Corp and Eldorado Gold Corp, you can compare the effects of market volatilities on Intermap Technologies 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 Intermap Technologies with a short position of Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and Eldorado Gold.

Diversification Opportunities for Intermap Technologies and Eldorado Gold

-0.51

Correlation Coefficient

Intermap Technologies  Eldorado Gold

Excellent diversification

The 3 months correlation between Intermap and Eldorado is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp 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 Intermap Technologies 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 Intermap Technologies Corp 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 Intermap Technologies i.e., Intermap Technologies and Eldorado Gold go up and down completely randomly.

Pair Corralation between Intermap Technologies and Eldorado Gold

Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 2.03 times more return on investment than Eldorado Gold. However, Intermap Technologies is 2.03 times more volatile than Eldorado Gold Corp. It trades about 0.03 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.04 per unit of risk. If you would invest  240.00  in Intermap Technologies Corp on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Intermap Technologies Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intermap Technologies Corp  vs.  Eldorado Gold Corp

Intermap Technologies

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intermap Technologies Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Intermap Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Eldorado Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eldorado Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Intermap Technologies and Eldorado Gold

The main advantage of trading using opposite Intermap Technologies and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies 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.

The idea behind Intermap Technologies Corp and Eldorado Gold Corp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.