Correlation Between Eastern Platinum and Endeavour Silver
Can any of the company-specific risk be diversified away by investing in both Eastern Platinum and Endeavour Silver 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 Eastern Platinum and Endeavour Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Platinum Limited and Endeavour Silver Corp, you can compare the effects of market volatilities on Eastern Platinum and Endeavour Silver 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 Eastern Platinum with a short position of Endeavour Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Platinum and Endeavour Silver.
Diversification Opportunities for Eastern Platinum and Endeavour Silver
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Endeavour is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Platinum Limited and Endeavour Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Silver Corp and Eastern Platinum 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 Eastern Platinum Limited are associated (or correlated) with Endeavour Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Silver Corp has no effect on the direction of Eastern Platinum i.e., Eastern Platinum and Endeavour Silver go up and down completely randomly.
Pair Corralation between Eastern Platinum and Endeavour Silver
Assuming the 90 days horizon Eastern Platinum Limited is expected to generate 1.57 times more return on investment than Endeavour Silver. However, Eastern Platinum is 1.57 times more volatile than Endeavour Silver Corp. It trades about -0.05 of its potential returns per unit of risk. Endeavour Silver Corp is currently generating about -0.1 per unit of risk. If you would invest 11.00 in Eastern Platinum Limited on September 14, 2024 and sell it today you would lose (1.00) from holding Eastern Platinum Limited or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Platinum Limited vs. Endeavour Silver Corp
Performance |
| Timeline |
| Eastern Platinum |
| Endeavour Silver Corp |
Eastern Platinum and Endeavour Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Platinum and Endeavour Silver
The main advantage of trading using opposite Eastern Platinum and Endeavour Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Platinum position performs unexpectedly, Endeavour Silver 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 Endeavour Silver will offset losses from the drop in Endeavour Silver's long position.| Eastern Platinum vs. Thunder Mountain Gold | Eastern Platinum vs. Chesapeake Gold Corp | Eastern Platinum vs. AbraSilver Resource Corp | Eastern Platinum vs. GoGold Resources |
| Endeavour Silver vs. McEwen Mining | Endeavour Silver vs. SilverCrest Metals | Endeavour Silver vs. Avino Silver Gold | Endeavour Silver vs. Compania de Minas |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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