Correlation Between Endeavour Mining and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and VIENNA INSURANCE 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 VIENNA INSURANCE 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 VIENNA INSURANCE GR, you can compare the effects of market volatilities on Endeavour Mining and VIENNA INSURANCE 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 VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and VIENNA INSURANCE.
Diversification Opportunities for Endeavour Mining and VIENNA INSURANCE
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Endeavour and VIENNA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE 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 VIENNA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIENNA INSURANCE has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between Endeavour Mining and VIENNA INSURANCE
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 3.19 times less return on investment than VIENNA INSURANCE. In addition to that, Endeavour Mining is 3.03 times more volatile than VIENNA INSURANCE GR. It trades about 0.01 of its total potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.08 per unit of volatility. If you would invest 2,291 in VIENNA INSURANCE GR on October 28, 2024 and sell it today you would earn a total of 844.00 from holding VIENNA INSURANCE GR or generate 36.84% 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. VIENNA INSURANCE GR
Performance |
| Timeline |
| Endeavour Mining PLC |
| VIENNA INSURANCE |
Endeavour Mining and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and VIENNA INSURANCE
The main advantage of trading using opposite Endeavour Mining and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, VIENNA INSURANCE 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 VIENNA INSURANCE will offset losses from the drop in VIENNA INSURANCE's long position.| Endeavour Mining vs. Jupiter Fund Management | Endeavour Mining vs. SCANSOURCE | Endeavour Mining vs. PLAYTECH | Endeavour Mining vs. LG Display Co |
| VIENNA INSURANCE vs. PLANT VEDA FOODS | VIENNA INSURANCE vs. Transport International Holdings | VIENNA INSURANCE vs. AEON METALS LTD | VIENNA INSURANCE vs. Kaiser Aluminum |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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