Correlation Between Beeks Trading and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and Endeavour 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 Beeks Trading and Endeavour Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Endeavour Mining Corp, you can compare the effects of market volatilities on Beeks Trading and Endeavour 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 Beeks Trading with a short position of Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Endeavour Mining.
Diversification Opportunities for Beeks Trading and Endeavour Mining
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beeks and Endeavour is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining Corp and Beeks Trading 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 Beeks Trading are associated (or correlated) with Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of Beeks Trading i.e., Beeks Trading and Endeavour Mining go up and down completely randomly.
Pair Corralation between Beeks Trading and Endeavour Mining
Assuming the 90 days trading horizon Beeks Trading is expected to generate 1.25 times more return on investment than Endeavour Mining. However, Beeks Trading is 1.25 times more volatile than Endeavour Mining Corp. It trades about 0.05 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.01 per unit of risk. If you would invest 15,150 in Beeks Trading on August 30, 2024 and sell it today you would earn a total of 11,150 from holding Beeks Trading or generate 73.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Beeks Trading vs. Endeavour Mining Corp
Performance |
| Timeline |
| Beeks Trading |
| Endeavour Mining Corp |
Beeks Trading and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Endeavour Mining
The main advantage of trading using opposite Beeks Trading and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, Endeavour 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 Endeavour Mining will offset losses from the drop in Endeavour Mining's long position.| Beeks Trading vs. Bloomsbury Publishing Plc | Beeks Trading vs. Cizzle Biotechnology Holdings | Beeks Trading vs. Oakley Capital Investments | Beeks Trading vs. Molson Coors Beverage |
| Endeavour Mining vs. Seraphim Space Investment | Endeavour Mining vs. Brunner Investment Trust | Endeavour Mining vs. Dunedin Enterprise Investment | Endeavour Mining vs. Centaur Media |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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