Correlation Between Endeavour Mining and OceanaGold
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and OceanaGold 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 OceanaGold 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 OceanaGold, you can compare the effects of market volatilities on Endeavour Mining and OceanaGold 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 OceanaGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and OceanaGold.
Diversification Opportunities for Endeavour Mining and OceanaGold
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Endeavour and OceanaGold is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and OceanaGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanaGold 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 OceanaGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanaGold has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and OceanaGold go up and down completely randomly.
Pair Corralation between Endeavour Mining and OceanaGold
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 12.55 times less return on investment than OceanaGold. But when comparing it to its historical volatility, Endeavour Mining Corp is 1.2 times less risky than OceanaGold. It trades about 0.01 of its potential returns per unit of risk. OceanaGold is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 237.00 in OceanaGold on September 1, 2024 and sell it today you would earn a total of 205.00 from holding OceanaGold or generate 86.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining Corp vs. OceanaGold
Performance |
| Timeline |
| Endeavour Mining Corp |
| OceanaGold |
Endeavour Mining and OceanaGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and OceanaGold
The main advantage of trading using opposite Endeavour Mining and OceanaGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, OceanaGold 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 OceanaGold will offset losses from the drop in OceanaGold's long position.| Endeavour Mining vs. SSR Mining | Endeavour Mining vs. Centerra Gold | Endeavour Mining vs. Alamos Gold | Endeavour Mining vs. Osisko Gold Ro |
| OceanaGold vs. Torex Gold Resources | OceanaGold vs. Wesdome Gold Mines | OceanaGold vs. Centerra Gold | OceanaGold vs. New Gold |
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 CEOs Directory module to screen CEOs from public companies around the world.
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