Correlation Between Endeavour Silver and Chesapeake Gold
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and Chesapeake 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 Endeavour Silver and Chesapeake Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Silver Corp and Chesapeake Gold Corp, you can compare the effects of market volatilities on Endeavour Silver and Chesapeake 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 Endeavour Silver with a short position of Chesapeake Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and Chesapeake Gold.
Diversification Opportunities for Endeavour Silver and Chesapeake Gold
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Endeavour and Chesapeake is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Chesapeake Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Gold Corp and Endeavour Silver 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 Endeavour Silver Corp are associated (or correlated) with Chesapeake Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Gold Corp has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Chesapeake Gold go up and down completely randomly.
Pair Corralation between Endeavour Silver and Chesapeake Gold
Considering the 90-day investment horizon Endeavour Silver Corp is expected to under-perform the Chesapeake Gold. But the stock apears to be less risky and, when comparing its historical volatility, Endeavour Silver Corp is 1.59 times less risky than Chesapeake Gold. The stock trades about -0.06 of its potential returns per unit of risk. The Chesapeake Gold Corp is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Chesapeake Gold Corp on October 23, 2024 and sell it today you would earn a total of 37.00 from holding Chesapeake Gold Corp or generate 62.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Silver Corp vs. Chesapeake Gold Corp
Performance |
| Timeline |
| Endeavour Silver Corp |
| Chesapeake Gold Corp |
Endeavour Silver and Chesapeake Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and Chesapeake Gold
The main advantage of trading using opposite Endeavour Silver and Chesapeake Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, Chesapeake 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 Chesapeake Gold will offset losses from the drop in Chesapeake Gold's long position.| Endeavour Silver vs. McEwen Mining | Endeavour Silver vs. SilverCrest Metals | Endeavour Silver vs. Avino Silver Gold | Endeavour Silver vs. Compania de Minas |
| Chesapeake Gold vs. Eastern Platinum Limited | Chesapeake Gold vs. Thunder Mountain Gold | Chesapeake Gold vs. AbraSilver Resource Corp | Chesapeake Gold vs. Provenance 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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