Correlation Between Anglesey Mining and Endo International
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining and Endo International 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 Anglesey Mining and Endo International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and Endo International PLC, you can compare the effects of market volatilities on Anglesey Mining and Endo International 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 Anglesey Mining with a short position of Endo International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and Endo International.
Diversification Opportunities for Anglesey Mining and Endo International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anglesey and Endo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining and Endo International PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endo International PLC and Anglesey 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 Anglesey Mining are associated (or correlated) with Endo International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endo International PLC has no effect on the direction of Anglesey Mining i.e., Anglesey Mining and Endo International go up and down completely randomly.
Pair Corralation between Anglesey Mining and Endo International
Assuming the 90 days trading horizon Anglesey Mining is expected to generate 2.8 times more return on investment than Endo International. However, Anglesey Mining is 2.8 times more volatile than Endo International PLC. It trades about 0.13 of its potential returns per unit of risk. Endo International PLC is currently generating about -0.01 per unit of risk. If you would invest 88.00 in Anglesey Mining on September 17, 2024 and sell it today you would earn a total of 5.00 from holding Anglesey Mining or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglesey Mining vs. Endo International PLC
Performance |
| Timeline |
| Anglesey Mining |
| Endo International PLC |
Anglesey Mining and Endo International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglesey Mining and Endo International
The main advantage of trading using opposite Anglesey Mining and Endo International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining position performs unexpectedly, Endo International 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 Endo International will offset losses from the drop in Endo International's long position.| Anglesey Mining vs. Endeavour Mining Corp | Anglesey Mining vs. Datagroup SE | Anglesey Mining vs. Hochschild Mining plc | Anglesey Mining vs. Empire Metals Limited |
| Endo International vs. Eastinco Mining Exploration | Endo International vs. Anglesey Mining | Endo International vs. Beowulf Mining | Endo International vs. Primary Health Properties |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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