Correlation Between Endeavour Mining and IXICO PLC
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and IXICO 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 IXICO 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 IXICO PLC, you can compare the effects of market volatilities on Endeavour Mining and IXICO 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 IXICO PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and IXICO PLC.
Diversification Opportunities for Endeavour Mining and IXICO PLC
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Endeavour and IXICO is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and IXICO PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXICO 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 IXICO PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXICO PLC has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and IXICO PLC go up and down completely randomly.
Pair Corralation between Endeavour Mining and IXICO PLC
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to generate 0.7 times more return on investment than IXICO PLC. However, Endeavour Mining Corp is 1.43 times less risky than IXICO PLC. It trades about 0.0 of its potential returns per unit of risk. IXICO PLC is currently generating about -0.03 per unit of risk. If you would invest 157,626 in Endeavour Mining Corp on September 20, 2024 and sell it today you would lose (13,726) from holding Endeavour Mining Corp or give up 8.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Endeavour Mining Corp vs. IXICO PLC
Performance |
| Timeline |
| Endeavour Mining Corp |
| IXICO PLC |
Endeavour Mining and IXICO PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and IXICO PLC
The main advantage of trading using opposite Endeavour Mining and IXICO PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, IXICO 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 IXICO PLC will offset losses from the drop in IXICO PLC's long position.| Endeavour Mining vs. Future Metals NL | Endeavour Mining vs. Westlake Chemical Corp | Endeavour Mining vs. GreenX Metals | Endeavour Mining vs. National Beverage Corp |
| IXICO PLC vs. Odfjell Drilling | IXICO PLC vs. Telecom Italia SpA | IXICO PLC vs. Pentair PLC | IXICO PLC vs. Verizon Communications |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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