Correlation Between Endeavour Mining and X FAB
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and X FAB 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 X FAB 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 X FAB Silicon Foundries, you can compare the effects of market volatilities on Endeavour Mining and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and X FAB.
Diversification Opportunities for Endeavour Mining and X FAB
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Endeavour and XFB is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and X FAB go up and down completely randomly.
Pair Corralation between Endeavour Mining and X FAB
Assuming the 90 days trading horizon Endeavour Mining PLC is expected to generate 0.82 times more return on investment than X FAB. However, Endeavour Mining PLC is 1.22 times less risky than X FAB. It trades about 0.32 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.02 per unit of risk. If you would invest 1,793 in Endeavour Mining PLC on November 7, 2024 and sell it today you would earn a total of 295.00 from holding Endeavour Mining PLC or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Endeavour Mining PLC vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Endeavour Mining PLC |
| X FAB Silicon |
Endeavour Mining and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and X FAB
The main advantage of trading using opposite Endeavour Mining and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.| Endeavour Mining vs. Harmony Gold Mining | Endeavour Mining vs. Yanzhou Coal Mining | Endeavour Mining vs. Xinhua Winshare Publishing | Endeavour Mining vs. MAGNUM MINING EXP |
| X FAB vs. New China Life | X FAB vs. SBI Insurance Group | X FAB vs. Daito Trust Construction | X FAB vs. VIENNA INSURANCE GR |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |