Correlation Between Endurance Gold and Argo Gold
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and Argo 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 Endurance Gold and Argo Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endurance Gold and Argo Gold, you can compare the effects of market volatilities on Endurance Gold and Argo 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 Endurance Gold with a short position of Argo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and Argo Gold.
Diversification Opportunities for Endurance Gold and Argo Gold
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Endurance and Argo is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Gold and Endurance Gold 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 Endurance Gold are associated (or correlated) with Argo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Gold has no effect on the direction of Endurance Gold i.e., Endurance Gold and Argo Gold go up and down completely randomly.
Pair Corralation between Endurance Gold and Argo Gold
Assuming the 90 days horizon Endurance Gold is expected to generate 6.75 times less return on investment than Argo Gold. But when comparing it to its historical volatility, Endurance Gold is 1.27 times less risky than Argo Gold. It trades about 0.02 of its potential returns per unit of risk. Argo Gold is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5.60 in Argo Gold on October 24, 2024 and sell it today you would earn a total of 0.35 from holding Argo Gold or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Endurance Gold vs. Argo Gold
Performance |
| Timeline |
| Endurance Gold |
| Argo Gold |
Endurance Gold and Argo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and Argo Gold
The main advantage of trading using opposite Endurance Gold and Argo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, Argo 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 Argo Gold will offset losses from the drop in Argo Gold's long position.| Endurance Gold vs. Red Pine Exploration | Endurance Gold vs. Altamira Gold Corp | Endurance Gold vs. Grande Portage Resources | Endurance Gold vs. Tectonic Metals |
| Argo Gold vs. Blue Star Gold | Argo Gold vs. Angkor Resources Corp | Argo Gold vs. Advance Gold Corp | Argo Gold vs. Advance United Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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