Correlation Between Endeavour Mining and MT Bank
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and MT Bank 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 MT Bank 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 MT Bank Corp, you can compare the effects of market volatilities on Endeavour Mining and MT Bank 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 MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and MT Bank.
Diversification Opportunities for Endeavour Mining and MT Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Endeavour and 0JW2 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp 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 MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and MT Bank go up and down completely randomly.
Pair Corralation between Endeavour Mining and MT Bank
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the MT Bank. In addition to that, Endeavour Mining is 1.28 times more volatile than MT Bank Corp. It trades about -0.01 of its total potential returns per unit of risk. MT Bank Corp is currently generating about 0.18 per unit of volatility. If you would invest 16,391 in MT Bank Corp on September 12, 2024 and sell it today you would earn a total of 3,972 from holding MT Bank Corp or generate 24.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Endeavour Mining Corp vs. MT Bank Corp
Performance |
| Timeline |
| Endeavour Mining Corp |
| MT Bank Corp |
Endeavour Mining and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and MT Bank
The main advantage of trading using opposite Endeavour Mining and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.| Endeavour Mining vs. McEwen Mining | Endeavour Mining vs. Applied Materials | Endeavour Mining vs. Wheaton Precious Metals | Endeavour Mining vs. Bisichi Mining PLC |
| MT Bank vs. Air Products Chemicals | MT Bank vs. Park Hotels Resorts | MT Bank vs. Roper Technologies | MT Bank vs. Melia Hotels |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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