Correlation Between Endeavour Mining and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Calibre Mining 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 Calibre Mining 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 Calibre Mining Corp, you can compare the effects of market volatilities on Endeavour Mining and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Calibre Mining.
Diversification Opportunities for Endeavour Mining and Calibre Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Endeavour and Calibre is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Calibre Mining go up and down completely randomly.
Pair Corralation between Endeavour Mining and Calibre Mining
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 3.4 times less return on investment than Calibre Mining. But when comparing it to its historical volatility, Endeavour Mining PLC is 1.05 times less risky than Calibre Mining. It trades about 0.02 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 103.00 in Calibre Mining Corp on December 13, 2024 and sell it today you would earn a total of 88.00 from holding Calibre Mining Corp or generate 85.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Endeavour Mining PLC vs. Calibre Mining Corp
Performance |
| Timeline |
| Endeavour Mining PLC |
| Calibre Mining Corp |
Endeavour Mining and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Calibre Mining
The main advantage of trading using opposite Endeavour Mining and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| Endeavour Mining vs. Jupiter Fund Management | ||
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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