Correlation Between Endeavour Mining and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Endeavour Mining and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and ANTA SPORTS.
Diversification Opportunities for Endeavour Mining and ANTA SPORTS
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Endeavour and ANTA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Endeavour Mining and ANTA SPORTS
Assuming the 90 days trading horizon Endeavour Mining PLC is expected to under-perform the ANTA SPORTS. In addition to that, Endeavour Mining is 1.33 times more volatile than ANTA SPORTS PRODUCT. It trades about -0.08 of its total potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.05 per unit of volatility. If you would invest 988.00 in ANTA SPORTS PRODUCT on October 16, 2024 and sell it today you would lose (16.00) from holding ANTA SPORTS PRODUCT or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining PLC vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Endeavour Mining PLC |
| ANTA SPORTS PRODUCT |
Endeavour Mining and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and ANTA SPORTS
The main advantage of trading using opposite Endeavour Mining and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Endeavour Mining vs. TRADEGATE | Endeavour Mining vs. FLOW TRADERS LTD | Endeavour Mining vs. SIDETRADE EO 1 | Endeavour Mining vs. Sixt Leasing SE |
| ANTA SPORTS vs. INDO RAMA SYNTHETIC | ANTA SPORTS vs. Mitsui Chemicals | ANTA SPORTS vs. Eurasia Mining Plc | ANTA SPORTS vs. Endeavour Mining PLC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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