Correlation Between YXTCOM GROUP and Eldorado Gold

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

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

Diversification Opportunities for YXTCOM GROUP and Eldorado Gold

0.38

Correlation Coefficient

YXTCOM GROUP  Eldorado Gold

Weak diversification

The 3 months correlation between YXTCOM and Eldorado is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding YXTCOM GROUP HOLDING 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 YXTCOM GROUP 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 YXTCOM GROUP HOLDING 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 YXTCOM GROUP i.e., YXTCOM GROUP and Eldorado Gold go up and down completely randomly.

Pair Corralation between YXTCOM GROUP and Eldorado Gold

Considering the 90-day investment horizon YXTCOM GROUP HOLDING is expected to under-perform the Eldorado Gold. In addition to that, YXTCOM GROUP is 3.84 times more volatile than Eldorado Gold Corp. It trades about -0.12 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.02 per unit of volatility. If you would invest  1,468  in Eldorado Gold Corp on September 27, 2024 and sell it today you would earn a total of  36.00  from holding Eldorado Gold Corp or generate 2.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	73.6%
Values	Daily Returns

YXTCOM GROUP HOLDING  vs.  Eldorado Gold Corp

YXTCOM GROUP HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YXTCOM GROUP HOLDING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with YXTCOM GROUP and Eldorado Gold

The main advantage of trading using opposite YXTCOM GROUP and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YXTCOM GROUP 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 YXTCOM GROUP HOLDING 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..