Correlation Between Endeavour Silver and PJX Resources
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and PJX Resources 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 PJX Resources 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 PJX Resources, you can compare the effects of market volatilities on Endeavour Silver and PJX Resources 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 PJX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and PJX Resources.
Diversification Opportunities for Endeavour Silver and PJX Resources
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Endeavour and PJX is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and PJX Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJX Resources 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 PJX Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJX Resources has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and PJX Resources go up and down completely randomly.
Pair Corralation between Endeavour Silver and PJX Resources
Assuming the 90 days trading horizon Endeavour Silver Corp is expected to under-perform the PJX Resources. But the stock apears to be less risky and, when comparing its historical volatility, Endeavour Silver Corp is 3.14 times less risky than PJX Resources. The stock trades about -0.15 of its potential returns per unit of risk. The PJX Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 12.00 in PJX Resources on September 3, 2024 and sell it today you would lose (1.00) from holding PJX Resources or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Silver Corp vs. PJX Resources
Performance |
| Timeline |
| Endeavour Silver Corp |
| PJX Resources |
Endeavour Silver and PJX Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and PJX Resources
The main advantage of trading using opposite Endeavour Silver and PJX Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, PJX Resources 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 PJX Resources will offset losses from the drop in PJX Resources' long position.| Endeavour Silver vs. MAG Silver Corp | Endeavour Silver vs. Fortuna Silver Mines | Endeavour Silver vs. Silvercorp Metals | Endeavour Silver vs. Pan American Silver |
| PJX Resources vs. Endeavour Silver Corp | PJX Resources vs. Perseus Mining | PJX Resources vs. Maple Leaf Foods | PJX Resources vs. Cogeco Communications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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