Correlation Between Endeavour Mining and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and AIM ImmunoTech 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 Mining and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Mining Corp and AIM ImmunoTech, you can compare the effects of market volatilities on Endeavour Mining and AIM ImmunoTech 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 Mining with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and AIM ImmunoTech.
Diversification Opportunities for Endeavour Mining and AIM ImmunoTech
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Endeavour and AIM is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Endeavour Mining 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 Mining Corp are associated (or correlated) with AIM ImmunoTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ImmunoTech has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Endeavour Mining and AIM ImmunoTech
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the AIM ImmunoTech. But the stock apears to be less risky and, when comparing its historical volatility, Endeavour Mining Corp is 2.98 times less risky than AIM ImmunoTech. The stock trades about -0.24 of its potential returns per unit of risk. The AIM ImmunoTech is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 26.00 in AIM ImmunoTech on September 1, 2024 and sell it today you would lose (3.00) from holding AIM ImmunoTech or give up 11.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining Corp vs. AIM ImmunoTech
Performance |
| Timeline |
| Endeavour Mining Corp |
| AIM ImmunoTech |
Endeavour Mining and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and AIM ImmunoTech
The main advantage of trading using opposite Endeavour Mining and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, AIM ImmunoTech 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 AIM ImmunoTech will offset losses from the drop in AIM ImmunoTech's long position.| Endeavour Mining vs. Summit Materials Cl | Endeavour Mining vs. Applied Materials | Endeavour Mining vs. Morgan Advanced Materials | Endeavour Mining vs. Lendinvest PLC |
| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
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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