Correlation Between Endurance Gold and Makara Mining
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and Makara Mining 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 Makara Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endurance Gold and Makara Mining Corp, you can compare the effects of market volatilities on Endurance Gold and Makara Mining 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 Makara Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and Makara Mining.
Diversification Opportunities for Endurance Gold and Makara Mining
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Endurance and Makara is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold and Makara Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makara Mining 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 Makara Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makara Mining Corp has no effect on the direction of Endurance Gold i.e., Endurance Gold and Makara Mining go up and down completely randomly.
Pair Corralation between Endurance Gold and Makara Mining
Assuming the 90 days horizon Endurance Gold is expected to under-perform the Makara Mining. But the pink sheet apears to be less risky and, when comparing its historical volatility, Endurance Gold is 12.76 times less risky than Makara Mining. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Makara Mining Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Makara Mining Corp on September 12, 2024 and sell it today you would lose (1.20) from holding Makara Mining Corp or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endurance Gold vs. Makara Mining Corp
Performance |
| Timeline |
| Endurance Gold |
| Makara Mining Corp |
Endurance Gold and Makara Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and Makara Mining
The main advantage of trading using opposite Endurance Gold and Makara Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, Makara Mining 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 Makara Mining will offset losses from the drop in Makara Mining's long position.| Endurance Gold vs. Revival Gold | Endurance Gold vs. Galiano Gold | Endurance Gold vs. US Gold Corp | Endurance Gold vs. HUMANA INC |
| Makara Mining vs. Revival Gold | Makara Mining vs. Galiano Gold | Makara Mining vs. US Gold Corp | Makara Mining vs. HUMANA INC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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