Correlation Between Endeavour Silver and Americas Gold
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and Americas Gold 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 Silver and Americas Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Silver Corp and Americas Gold and, you can compare the effects of market volatilities on Endeavour Silver and Americas Gold 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 Silver with a short position of Americas Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and Americas Gold.
Diversification Opportunities for Endeavour Silver and Americas Gold
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Endeavour and Americas is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Americas Gold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Gold and Endeavour Silver 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 Silver Corp are associated (or correlated) with Americas Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Gold has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Americas Gold go up and down completely randomly.
Pair Corralation between Endeavour Silver and Americas Gold
Assuming the 90 days horizon Endeavour Silver Corp is expected to under-perform the Americas Gold. But the stock apears to be less risky and, when comparing its historical volatility, Endeavour Silver Corp is 1.35 times less risky than Americas Gold. The stock trades about -0.21 of its potential returns per unit of risk. The Americas Gold and is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Americas Gold and on September 23, 2024 and sell it today you would lose (3.00) from holding Americas Gold and or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Silver Corp vs. Americas Gold and
Performance |
| Timeline |
| Endeavour Silver Corp |
| Americas Gold |
Endeavour Silver and Americas Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and Americas Gold
The main advantage of trading using opposite Endeavour Silver and Americas Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, Americas Gold 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 Americas Gold will offset losses from the drop in Americas Gold's long position.| Endeavour Silver vs. Pan American Silver | Endeavour Silver vs. First Majestic Silver | Endeavour Silver vs. MAG Silver Corp | Endeavour Silver vs. Silvercorp Metals |
| Americas Gold vs. Pan American Silver | Americas Gold vs. First Majestic Silver | Americas Gold vs. MAG Silver Corp | Americas Gold vs. Silvercorp Metals |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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