Correlation Between Endeavour Mining and Ceres Power
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Ceres Power 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 Ceres Power 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 Ceres Power Holdings, you can compare the effects of market volatilities on Endeavour Mining and Ceres Power 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 Ceres Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Ceres Power.
Diversification Opportunities for Endeavour Mining and Ceres Power
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Endeavour and Ceres is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Ceres Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceres Power Holdings 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 Ceres Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceres Power Holdings has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Ceres Power go up and down completely randomly.
Pair Corralation between Endeavour Mining and Ceres Power
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to generate 0.75 times more return on investment than Ceres Power. However, Endeavour Mining Corp is 1.33 times less risky than Ceres Power. It trades about -0.08 of its potential returns per unit of risk. Ceres Power Holdings is currently generating about -0.3 per unit of risk. If you would invest 173,400 in Endeavour Mining Corp on September 13, 2024 and sell it today you would lose (14,500) from holding Endeavour Mining Corp or give up 8.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Endeavour Mining Corp vs. Ceres Power Holdings
Performance |
| Timeline |
| Endeavour Mining Corp |
| Ceres Power Holdings |
Endeavour Mining and Ceres Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Ceres Power
The main advantage of trading using opposite Endeavour Mining and Ceres Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Ceres Power 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 Ceres Power will offset losses from the drop in Ceres Power'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 |
| Ceres Power vs. Viridian Therapeutics | Ceres Power vs. CVR Energy | Ceres Power vs. Nationwide Building Society | Ceres Power vs. Dollar Tree |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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