Correlation Between Endeavour Silver and Electra Battery
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and Electra Battery 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 Silver and Electra Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Silver Corp and Electra Battery Materials, you can compare the effects of market volatilities on Endeavour Silver and Electra Battery 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 Silver with a short position of Electra Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and Electra Battery.
Diversification Opportunities for Endeavour Silver and Electra Battery
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Endeavour and Electra is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Electra Battery Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra Battery Materials and Endeavour Silver 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 Silver Corp are associated (or correlated) with Electra Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra Battery Materials has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Electra Battery go up and down completely randomly.
Pair Corralation between Endeavour Silver and Electra Battery
Assuming the 90 days trading horizon Endeavour Silver Corp is expected to generate 1.22 times more return on investment than Electra Battery. However, Endeavour Silver is 1.22 times more volatile than Electra Battery Materials. It trades about -0.08 of its potential returns per unit of risk. Electra Battery Materials is currently generating about -0.19 per unit of risk. If you would invest 628.00 in Endeavour Silver Corp on September 14, 2024 and sell it today you would lose (47.00) from holding Endeavour Silver Corp or give up 7.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Silver Corp vs. Electra Battery Materials
Performance |
| Timeline |
| Endeavour Silver Corp |
| Electra Battery Materials |
Endeavour Silver and Electra Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and Electra Battery
The main advantage of trading using opposite Endeavour Silver and Electra Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, Electra Battery 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 Electra Battery will offset losses from the drop in Electra Battery's long position.| Endeavour Silver vs. Outcrop Gold Corp | Endeavour Silver vs. Strikepoint Gold | Endeavour Silver vs. Defiance Silver Corp | Endeavour Silver vs. Eskay Mining Corp |
| Electra Battery vs. Foraco International SA | Electra Battery vs. Geodrill Limited | Electra Battery vs. Major Drilling Group | Electra Battery vs. Bri Chem Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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