Correlation Between Endeavour Mining and Suncor Energy
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Suncor Energy 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 Suncor Energy 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 Suncor Energy, you can compare the effects of market volatilities on Endeavour Mining and Suncor Energy 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 Suncor Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Suncor Energy.
Diversification Opportunities for Endeavour Mining and Suncor Energy
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Endeavour and Suncor is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Suncor Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncor Energy 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 Suncor Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncor Energy has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Suncor Energy go up and down completely randomly.
Pair Corralation between Endeavour Mining and Suncor Energy
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 2.4 times less return on investment than Suncor Energy. In addition to that, Endeavour Mining is 1.34 times more volatile than Suncor Energy. It trades about 0.01 of its total potential returns per unit of risk. Suncor Energy is currently generating about 0.04 per unit of volatility. If you would invest 4,005 in Suncor Energy on September 13, 2024 and sell it today you would earn a total of 1,287 from holding Suncor Energy or generate 32.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining Corp vs. Suncor Energy
Performance |
| Timeline |
| Endeavour Mining Corp |
| Suncor Energy |
Endeavour Mining and Suncor Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Suncor Energy
The main advantage of trading using opposite Endeavour Mining and Suncor Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Suncor Energy 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 Suncor Energy will offset losses from the drop in Suncor Energy's long position.| Endeavour Mining vs. Arizona Sonoran Copper | Endeavour Mining vs. Marimaca Copper Corp | Endeavour Mining vs. World Copper | Endeavour Mining vs. QC Copper and |
| Suncor Energy vs. Enbridge | Suncor Energy vs. Canadian Natural Resources | Suncor Energy vs. Toronto Dominion Bank | Suncor Energy vs. Bank of Nova |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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