Correlation Between Endurance Gold and New Guinea
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and New Guinea 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 New Guinea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endurance Gold and New Guinea Gold, you can compare the effects of market volatilities on Endurance Gold and New Guinea 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 New Guinea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and New Guinea.
Diversification Opportunities for Endurance Gold and New Guinea
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Endurance and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold and New Guinea Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Guinea 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 New Guinea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Guinea Gold has no effect on the direction of Endurance Gold i.e., Endurance Gold and New Guinea go up and down completely randomly.
Pair Corralation between Endurance Gold and New Guinea
Assuming the 90 days horizon Endurance Gold is expected to generate 1.12 times more return on investment than New Guinea. However, Endurance Gold is 1.12 times more volatile than New Guinea Gold. It trades about -0.01 of its potential returns per unit of risk. New Guinea Gold is currently generating about -0.04 per unit of risk. If you would invest 26.00 in Endurance Gold on September 4, 2024 and sell it today you would lose (16.00) from holding Endurance Gold or give up 61.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endurance Gold vs. New Guinea Gold
Performance |
| Timeline |
| Endurance Gold |
| New Guinea Gold |
Endurance Gold and New Guinea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and New Guinea
The main advantage of trading using opposite Endurance Gold and New Guinea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, New Guinea 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 New Guinea will offset losses from the drop in New Guinea'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 |
| New Guinea vs. Endurance Gold | New Guinea vs. Sixty North Gold | New Guinea vs. St James Gold | New Guinea vs. Makara Mining 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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