Correlation Between GoGold Resources and Endeavour Silver
Can any of the company-specific risk be diversified away by investing in both GoGold Resources and Endeavour Silver 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 GoGold Resources and Endeavour Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoGold Resources and Endeavour Silver Corp, you can compare the effects of market volatilities on GoGold Resources and Endeavour Silver 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 GoGold Resources with a short position of Endeavour Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoGold Resources and Endeavour Silver.
Diversification Opportunities for GoGold Resources and Endeavour Silver
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GoGold and Endeavour is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GoGold Resources and Endeavour Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Silver Corp and GoGold Resources 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 GoGold Resources are associated (or correlated) with Endeavour Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Silver Corp has no effect on the direction of GoGold Resources i.e., GoGold Resources and Endeavour Silver go up and down completely randomly.
Pair Corralation between GoGold Resources and Endeavour Silver
Assuming the 90 days horizon GoGold Resources is expected to generate 5.46 times less return on investment than Endeavour Silver. But when comparing it to its historical volatility, GoGold Resources is 1.14 times less risky than Endeavour Silver. It trades about 0.01 of its potential returns per unit of risk. Endeavour Silver Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Endeavour Silver Corp on August 29, 2024 and sell it today you would earn a total of 147.00 from holding Endeavour Silver Corp or generate 55.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoGold Resources vs. Endeavour Silver Corp
Performance |
| Timeline |
| GoGold Resources |
| Endeavour Silver Corp |
GoGold Resources and Endeavour Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoGold Resources and Endeavour Silver
The main advantage of trading using opposite GoGold Resources and Endeavour Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoGold Resources position performs unexpectedly, Endeavour Silver 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 Endeavour Silver will offset losses from the drop in Endeavour Silver's long position.| GoGold Resources vs. Silver Hammer Mining | GoGold Resources vs. Reyna Silver Corp | GoGold Resources vs. Guanajuato Silver | GoGold Resources vs. Silver One Resources |
| Endeavour Silver vs. McEwen Mining | Endeavour Silver vs. SilverCrest Metals | Endeavour Silver vs. Avino Silver Gold | Endeavour Silver vs. Compania de Minas |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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