Correlation Between Endeavour Mining and Pentair PLC
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Pentair PLC 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 Pentair PLC 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 Pentair PLC, you can compare the effects of market volatilities on Endeavour Mining and Pentair PLC 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 Pentair PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Pentair PLC.
Diversification Opportunities for Endeavour Mining and Pentair PLC
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Endeavour and Pentair is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Pentair PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pentair PLC 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 Pentair PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pentair PLC has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Pentair PLC go up and down completely randomly.
Pair Corralation between Endeavour Mining and Pentair PLC
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the Pentair PLC. In addition to that, Endeavour Mining is 1.22 times more volatile than Pentair PLC. It trades about 0.0 of its total potential returns per unit of risk. Pentair PLC is currently generating about 0.09 per unit of volatility. If you would invest 4,995 in Pentair PLC on October 12, 2024 and sell it today you would earn a total of 4,701 from holding Pentair PLC or generate 94.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.99% |
| Values | Daily Returns |
Endeavour Mining Corp vs. Pentair PLC
Performance |
| Timeline |
| Endeavour Mining Corp |
| Pentair PLC |
Endeavour Mining and Pentair PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Pentair PLC
The main advantage of trading using opposite Endeavour Mining and Pentair PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Pentair PLC 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 Pentair PLC will offset losses from the drop in Pentair PLC's long position.| Endeavour Mining vs. Givaudan SA | Endeavour Mining vs. Antofagasta PLC | Endeavour Mining vs. Ferrexpo PLC | Endeavour Mining vs. Atalaya Mining |
| Pentair PLC vs. Endeavour Mining Corp | Pentair PLC vs. iShares Physical Silver | Pentair PLC vs. Playtech Plc | Pentair PLC vs. Hochschild Mining 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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