Correlation Between Endeavour Mining and Apple
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Endeavour Mining and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Apple.
Diversification Opportunities for Endeavour Mining and Apple
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Endeavour and Apple is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Apple go up and down completely randomly.
Pair Corralation between Endeavour Mining and Apple
Assuming the 90 days trading horizon Endeavour Mining PLC is expected to generate 1.3 times more return on investment than Apple. However, Endeavour Mining is 1.3 times more volatile than Apple Inc. It trades about 0.04 of its potential returns per unit of risk. Apple Inc is currently generating about -0.51 per unit of risk. If you would invest 1,778 in Endeavour Mining PLC on October 23, 2024 and sell it today you would earn a total of 17.00 from holding Endeavour Mining PLC or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining PLC vs. Apple Inc
Performance |
| Timeline |
| Endeavour Mining PLC |
| Apple Inc |
Endeavour Mining and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Apple
The main advantage of trading using opposite Endeavour Mining and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Endeavour Mining vs. RESONANCE HEALTH | Endeavour Mining vs. CARDINAL HEALTH | Endeavour Mining vs. US Physical Therapy | Endeavour Mining vs. CLOVER HEALTH INV |
| Apple vs. Globex Mining Enterprises | Apple vs. Perseus Mining Limited | Apple vs. MAG SILVER | Apple vs. TRI CHEMICAL LABORATINC |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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