Correlation Between Enduro Metals and Exxon
Can any of the company-specific risk be diversified away by investing in both Enduro Metals and Exxon 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 Enduro Metals and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enduro Metals Corp and EXXON MOBIL CDR, you can compare the effects of market volatilities on Enduro Metals and Exxon 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 Enduro Metals with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enduro Metals and Exxon.
Diversification Opportunities for Enduro Metals and Exxon
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enduro and Exxon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Enduro Metals Corp and EXXON MOBIL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL CDR and Enduro Metals 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 Enduro Metals Corp are associated (or correlated) with Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL CDR has no effect on the direction of Enduro Metals i.e., Enduro Metals and Exxon go up and down completely randomly.
Pair Corralation between Enduro Metals and Exxon
Assuming the 90 days trading horizon Enduro Metals Corp is expected to generate 3.32 times more return on investment than Exxon. However, Enduro Metals is 3.32 times more volatile than EXXON MOBIL CDR. It trades about 0.02 of its potential returns per unit of risk. EXXON MOBIL CDR is currently generating about -0.46 per unit of risk. If you would invest 17.00 in Enduro Metals Corp on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Enduro Metals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enduro Metals Corp vs. EXXON MOBIL CDR
Performance |
| Timeline |
| Enduro Metals Corp |
| EXXON MOBIL CDR |
Enduro Metals and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enduro Metals and Exxon
The main advantage of trading using opposite Enduro Metals and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enduro Metals position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.| Enduro Metals vs. Outcrop Gold Corp | Enduro Metals vs. Strikepoint Gold | Enduro Metals vs. Defiance Silver Corp | Enduro Metals vs. Eskay 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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