Correlation Between Endeavour Silver and Saga Metals
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and Saga Metals 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 Saga Metals 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 Saga Metals Corp, you can compare the effects of market volatilities on Endeavour Silver and Saga Metals 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 Saga Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and Saga Metals.
Diversification Opportunities for Endeavour Silver and Saga Metals
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Endeavour and Saga is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Saga Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saga Metals 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 Saga Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saga Metals Corp has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Saga Metals go up and down completely randomly.
Pair Corralation between Endeavour Silver and Saga Metals
Assuming the 90 days trading horizon Endeavour Silver Corp is expected to generate 0.56 times more return on investment than Saga Metals. However, Endeavour Silver Corp is 1.78 times less risky than Saga Metals. It trades about 0.05 of its potential returns per unit of risk. Saga Metals Corp is currently generating about 0.0 per unit of risk. If you would invest 511.00 in Endeavour Silver Corp on September 3, 2024 and sell it today you would earn a total of 75.00 from holding Endeavour Silver Corp or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 41.6% |
| Values | Daily Returns |
Endeavour Silver Corp vs. Saga Metals Corp
Performance |
| Timeline |
| Endeavour Silver Corp |
| Saga Metals Corp |
Endeavour Silver and Saga Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and Saga Metals
The main advantage of trading using opposite Endeavour Silver and Saga Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, Saga Metals 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 Saga Metals will offset losses from the drop in Saga Metals' 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 |
| Saga Metals vs. Pembina Pipeline Corp | Saga Metals vs. Arizona Gold Silver | Saga Metals vs. Endeavour Silver Corp | Saga Metals vs. MAG Silver 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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