Correlation Between Endeavour Silver and NeXGold Mining
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and NeXGold 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 Endeavour Silver and NeXGold Mining 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 NeXGold Mining Corp, you can compare the effects of market volatilities on Endeavour Silver and NeXGold 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 Endeavour Silver with a short position of NeXGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and NeXGold Mining.
Diversification Opportunities for Endeavour Silver and NeXGold Mining
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Endeavour and NeXGold is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and NeXGold Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeXGold Mining Corp 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 NeXGold Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeXGold Mining Corp has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and NeXGold Mining go up and down completely randomly.
Pair Corralation between Endeavour Silver and NeXGold Mining
Assuming the 90 days trading horizon Endeavour Silver Corp is expected to generate 1.16 times more return on investment than NeXGold Mining. However, Endeavour Silver is 1.16 times more volatile than NeXGold Mining Corp. It trades about -0.31 of its potential returns per unit of risk. NeXGold Mining Corp is currently generating about -0.37 per unit of risk. If you would invest 733.00 in Endeavour Silver Corp on August 31, 2024 and sell it today you would lose (156.00) from holding Endeavour Silver Corp or give up 21.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Silver Corp vs. NeXGold Mining Corp
Performance |
| Timeline |
| Endeavour Silver Corp |
| NeXGold Mining Corp |
Endeavour Silver and NeXGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and NeXGold Mining
The main advantage of trading using opposite Endeavour Silver and NeXGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, NeXGold 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 NeXGold Mining will offset losses from the drop in NeXGold Mining'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 |
| NeXGold Mining vs. Newmont Goldcorp Corp | NeXGold Mining vs. Agnico Eagle Mines | NeXGold Mining vs. Barrick Gold Corp | NeXGold Mining vs. Wheaton Precious Metals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |