Correlation Between Endurance Gold and Independence Gold
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and Independence 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 Independence 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 Independence Gold Corp, you can compare the effects of market volatilities on Endurance Gold and Independence 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 Independence Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and Independence Gold.
Diversification Opportunities for Endurance Gold and Independence Gold
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Endurance and Independence is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold and Independence Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Gold Corp 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 Independence Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Gold Corp has no effect on the direction of Endurance Gold i.e., Endurance Gold and Independence Gold go up and down completely randomly.
Pair Corralation between Endurance Gold and Independence Gold
Assuming the 90 days horizon Endurance Gold is expected to under-perform the Independence Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Endurance Gold is 1.84 times less risky than Independence Gold. The pink sheet trades about -0.19 of its potential returns per unit of risk. The Independence Gold Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Independence Gold Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Independence Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endurance Gold vs. Independence Gold Corp
Performance |
| Timeline |
| Endurance Gold |
| Independence Gold Corp |
Endurance Gold and Independence Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and Independence Gold
The main advantage of trading using opposite Endurance Gold and Independence Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, Independence 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 Independence Gold will offset losses from the drop in Independence 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 |
| Independence Gold vs. Heliostar Metals | Independence Gold vs. Revival Gold | Independence Gold vs. Cabral Gold | Independence Gold vs. Cassiar Gold Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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