Correlation Between Endeavour Silver and American Hotel
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and American Hotel 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 American Hotel 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 American Hotel Income, you can compare the effects of market volatilities on Endeavour Silver and American Hotel 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 American Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and American Hotel.
Diversification Opportunities for Endeavour Silver and American Hotel
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Endeavour and American is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and American Hotel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Hotel Income 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 American Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Hotel Income has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and American Hotel go up and down completely randomly.
Pair Corralation between Endeavour Silver and American Hotel
Assuming the 90 days trading horizon Endeavour Silver Corp is expected to generate 0.8 times more return on investment than American Hotel. However, Endeavour Silver Corp is 1.24 times less risky than American Hotel. It trades about 0.04 of its potential returns per unit of risk. American Hotel Income is currently generating about -0.07 per unit of risk. If you would invest 428.00 in Endeavour Silver Corp on August 31, 2024 and sell it today you would earn a total of 158.00 from holding Endeavour Silver Corp or generate 36.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.35% |
| Values | Daily Returns |
Endeavour Silver Corp vs. American Hotel Income
Performance |
| Timeline |
| Endeavour Silver Corp |
| American Hotel Income |
Endeavour Silver and American Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and American Hotel
The main advantage of trading using opposite Endeavour Silver and American Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, American Hotel 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 American Hotel will offset losses from the drop in American Hotel's long position.| Endeavour Silver vs. Solar Alliance Energy | Endeavour Silver vs. Global X Active | Endeavour Silver vs. Financial 15 Split | Endeavour Silver vs. Rubicon Organics |
| American Hotel vs. Sprott Physical Gold | American Hotel vs. Canso Select Opportunities | American Hotel vs. Green Panda Capital | American Hotel vs. Manulife Finl Srs |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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