Correlation Between Endurance Gold and First Majestic
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and First Majestic 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 Endurance Gold and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endurance Gold Corp and First Majestic Silver, you can compare the effects of market volatilities on Endurance Gold and First Majestic 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 Endurance Gold with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and First Majestic.
Diversification Opportunities for Endurance Gold and First Majestic
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Endurance and First is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold Corp and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver and Endurance Gold 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 Endurance Gold Corp are associated (or correlated) with First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of Endurance Gold i.e., Endurance Gold and First Majestic go up and down completely randomly.
Pair Corralation between Endurance Gold and First Majestic
Assuming the 90 days horizon Endurance Gold Corp is expected to under-perform the First Majestic. In addition to that, Endurance Gold is 1.01 times more volatile than First Majestic Silver. It trades about -0.03 of its total potential returns per unit of risk. First Majestic Silver is currently generating about 0.06 per unit of volatility. If you would invest 811.00 in First Majestic Silver on August 30, 2024 and sell it today you would earn a total of 50.00 from holding First Majestic Silver or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endurance Gold Corp vs. First Majestic Silver
Performance |
| Timeline |
| Endurance Gold Corp |
| First Majestic Silver |
Endurance Gold and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and First Majestic
The main advantage of trading using opposite Endurance Gold and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, First Majestic 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 First Majestic will offset losses from the drop in First Majestic's long position.| Endurance Gold vs. Dynasty Gold Corp | Endurance Gold vs. Carlin Gold | Endurance Gold vs. Desert Gold Ventures | Endurance Gold vs. Cariboo Rose Resources |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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