Correlation Between Endeavour Mining and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Skandinaviska Enskilda 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 Skandinaviska Enskilda 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 Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Endeavour Mining and Skandinaviska Enskilda 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 Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Skandinaviska Enskilda.
Diversification Opportunities for Endeavour Mining and Skandinaviska Enskilda
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Endeavour and Skandinaviska is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda 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 Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Endeavour Mining and Skandinaviska Enskilda
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 2.81 times less return on investment than Skandinaviska Enskilda. In addition to that, Endeavour Mining is 1.14 times more volatile than Skandinaviska Enskilda Banken. It trades about 0.01 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.04 per unit of volatility. If you would invest 11,136 in Skandinaviska Enskilda Banken on August 30, 2024 and sell it today you would earn a total of 3,844 from holding Skandinaviska Enskilda Banken or generate 34.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.2% |
| Values | Daily Returns |
Endeavour Mining Corp vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Endeavour Mining Corp |
| Skandinaviska Enskilda |
Endeavour Mining and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Skandinaviska Enskilda
The main advantage of trading using opposite Endeavour Mining and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| Endeavour Mining vs. Wheaton Precious Metals | Endeavour Mining vs. Virgin Wines UK | Endeavour Mining vs. CNH Industrial NV | Endeavour Mining vs. Norman Broadbent Plc |
| Skandinaviska Enskilda vs. Lendinvest PLC | Skandinaviska Enskilda vs. Neometals | Skandinaviska Enskilda vs. Albion Technology General | Skandinaviska Enskilda vs. Jupiter Fund Management |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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