Correlation Between Endurance Gold and Westhaven Ventures
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and Westhaven Ventures 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 Westhaven Ventures 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 Westhaven Ventures, you can compare the effects of market volatilities on Endurance Gold and Westhaven Ventures 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 Westhaven Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and Westhaven Ventures.
Diversification Opportunities for Endurance Gold and Westhaven Ventures
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Endurance and Westhaven is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold Corp and Westhaven Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westhaven Ventures 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 Westhaven Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westhaven Ventures has no effect on the direction of Endurance Gold i.e., Endurance Gold and Westhaven Ventures go up and down completely randomly.
Pair Corralation between Endurance Gold and Westhaven Ventures
Assuming the 90 days horizon Endurance Gold Corp is expected to under-perform the Westhaven Ventures. But the stock apears to be less risky and, when comparing its historical volatility, Endurance Gold Corp is 1.97 times less risky than Westhaven Ventures. The stock trades about -0.01 of its potential returns per unit of risk. The Westhaven Ventures is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Westhaven Ventures on November 1, 2024 and sell it today you would lose (1.00) from holding Westhaven Ventures or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endurance Gold Corp vs. Westhaven Ventures
Performance |
| Timeline |
| Endurance Gold Corp |
| Westhaven Ventures |
Endurance Gold and Westhaven Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and Westhaven Ventures
The main advantage of trading using opposite Endurance Gold and Westhaven Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, Westhaven Ventures 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 Westhaven Ventures will offset losses from the drop in Westhaven Ventures' 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 |
| Westhaven Ventures vs. Kore Mining | Westhaven Ventures vs. Endurance Gold Corp | Westhaven Ventures vs. Galway Metals | Westhaven Ventures vs. Grande Portage Resources |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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