Correlation Between Endeavour Mining and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Jupiter Fund 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 Endeavour Mining and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Mining PLC and Jupiter Fund Management, you can compare the effects of market volatilities on Endeavour Mining and Jupiter Fund 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 Endeavour Mining with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Jupiter Fund.
Diversification Opportunities for Endeavour Mining and Jupiter Fund
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Endeavour and Jupiter is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and Endeavour Mining 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 Endeavour Mining PLC are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Jupiter Fund go up and down completely randomly.
Pair Corralation between Endeavour Mining and Jupiter Fund
Assuming the 90 days trading horizon Endeavour Mining PLC is expected to generate 0.58 times more return on investment than Jupiter Fund. However, Endeavour Mining PLC is 1.74 times less risky than Jupiter Fund. It trades about 0.26 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.12 per unit of risk. If you would invest 1,793 in Endeavour Mining PLC on November 6, 2024 and sell it today you would earn a total of 217.00 from holding Endeavour Mining PLC or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining PLC vs. Jupiter Fund Management
Performance |
| Timeline |
| Endeavour Mining PLC |
| Jupiter Fund Management |
Endeavour Mining and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Jupiter Fund
The main advantage of trading using opposite Endeavour Mining and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Endeavour Mining vs. Apollo Investment Corp | Endeavour Mining vs. Gladstone Investment | Endeavour Mining vs. New Residential Investment | Endeavour Mining vs. CDL INVESTMENT |
| Jupiter Fund vs. MAGNUM MINING EXP | Jupiter Fund vs. Eidesvik Offshore ASA | Jupiter Fund vs. STGEORGE MINING LTD | Jupiter Fund vs. GALENA MINING LTD |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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