Correlation Between Endurance Gold and Nine Mile
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and Nine Mile 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 Nine Mile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endurance Gold and Nine Mile Metals, you can compare the effects of market volatilities on Endurance Gold and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and Nine Mile.
Diversification Opportunities for Endurance Gold and Nine Mile
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Endurance and Nine is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of Endurance Gold i.e., Endurance Gold and Nine Mile go up and down completely randomly.
Pair Corralation between Endurance Gold and Nine Mile
Assuming the 90 days horizon Endurance Gold is expected to generate 0.35 times more return on investment than Nine Mile. However, Endurance Gold is 2.83 times less risky than Nine Mile. It trades about -0.11 of its potential returns per unit of risk. Nine Mile Metals is currently generating about -0.16 per unit of risk. If you would invest 11.00 in Endurance Gold on September 1, 2024 and sell it today you would lose (1.00) from holding Endurance Gold or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endurance Gold vs. Nine Mile Metals
Performance |
| Timeline |
| Endurance Gold |
| Nine Mile Metals |
Endurance Gold and Nine Mile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and Nine Mile
The main advantage of trading using opposite Endurance Gold and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile's long position.| Endurance Gold vs. Aurion Resources | Endurance Gold vs. Rio2 Limited | Endurance Gold vs. Palamina Corp | Endurance Gold vs. BTU Metals Corp |
| Nine Mile vs. Aurion Resources | Nine Mile vs. Rio2 Limited | Nine Mile vs. Palamina Corp | Nine Mile vs. BTU Metals 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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