Correlation Between Endeavour Mining and Gerresheimer
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Gerresheimer 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 Gerresheimer 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 Gerresheimer AG, you can compare the effects of market volatilities on Endeavour Mining and Gerresheimer 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 Gerresheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Gerresheimer.
Diversification Opportunities for Endeavour Mining and Gerresheimer
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Endeavour and Gerresheimer is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Gerresheimer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gerresheimer AG 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 Gerresheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gerresheimer AG has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Gerresheimer go up and down completely randomly.
Pair Corralation between Endeavour Mining and Gerresheimer
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the Gerresheimer. In addition to that, Endeavour Mining is 1.28 times more volatile than Gerresheimer AG. It trades about -0.25 of its total potential returns per unit of risk. Gerresheimer AG is currently generating about -0.14 per unit of volatility. If you would invest 7,855 in Gerresheimer AG on September 2, 2024 and sell it today you would lose (395.00) from holding Gerresheimer AG or give up 5.03% 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. Gerresheimer AG
Performance |
| Timeline |
| Endeavour Mining Corp |
| Gerresheimer AG |
Endeavour Mining and Gerresheimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Gerresheimer
The main advantage of trading using opposite Endeavour Mining and Gerresheimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Gerresheimer 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 Gerresheimer will offset losses from the drop in Gerresheimer's long position.| Endeavour Mining vs. Everyman Media Group | Endeavour Mining vs. Schweiter Technologies AG | Endeavour Mining vs. XLMedia PLC | Endeavour Mining vs. PureTech Health plc |
| Gerresheimer vs. GreenX Metals | Gerresheimer vs. Metals Exploration Plc | Gerresheimer vs. Endeavour Mining Corp | Gerresheimer vs. Optima Health plc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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