Correlation Between Endeavour Mining and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Baker Hughes 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 Baker Hughes 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 Baker Hughes Co, you can compare the effects of market volatilities on Endeavour Mining and Baker Hughes 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 Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Baker Hughes.
Diversification Opportunities for Endeavour Mining and Baker Hughes
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Endeavour and Baker is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes 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 Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Baker Hughes go up and down completely randomly.
Pair Corralation between Endeavour Mining and Baker Hughes
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the Baker Hughes. In addition to that, Endeavour Mining is 1.19 times more volatile than Baker Hughes Co. It trades about -0.01 of its total potential returns per unit of risk. Baker Hughes Co is currently generating about 0.05 per unit of volatility. If you would invest 2,765 in Baker Hughes Co on September 23, 2024 and sell it today you would earn a total of 1,247 from holding Baker Hughes Co or generate 45.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.61% |
| Values | Daily Returns |
Endeavour Mining Corp vs. Baker Hughes Co
Performance |
| Timeline |
| Endeavour Mining Corp |
| Baker Hughes |
Endeavour Mining and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Baker Hughes
The main advantage of trading using opposite Endeavour Mining and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.| Endeavour Mining vs. Givaudan SA | Endeavour Mining vs. Antofagasta PLC | Endeavour Mining vs. Ferrexpo PLC | Endeavour Mining vs. Atalaya Mining |
| Baker Hughes vs. Southern Copper Corp | Baker Hughes vs. Endeavour Mining Corp | Baker Hughes vs. Metals Exploration Plc | Baker Hughes vs. AMG Advanced Metallurgical |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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