Correlation Between Global X and Endeavour Silver
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Endeavour Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Active and Endeavour Silver Corp, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Endeavour Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Endeavour Silver.
Diversification Opportunities for Global X and Endeavour Silver
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Endeavour is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active 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 Global X 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 Global X Active 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 Global X i.e., Global X and Endeavour Silver go up and down completely randomly.
Pair Corralation between Global X and Endeavour Silver
Assuming the 90 days trading horizon Global X Active is expected to generate 0.14 times more return on investment than Endeavour Silver. However, Global X Active is 7.0 times less risky than Endeavour Silver. It trades about 0.14 of its potential returns per unit of risk. Endeavour Silver Corp is currently generating about -0.31 per unit of risk. If you would invest 927.00 in Global X Active on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Global X Active or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Active vs. Endeavour Silver Corp
Performance |
| Timeline |
| Global X Active |
| Endeavour Silver Corp |
Global X and Endeavour Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Endeavour Silver
The main advantage of trading using opposite Global X and Endeavour Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. iShares SPTSX Canadian | Global X vs. Global X Active | Global X vs. BMO Covered Call | Global X vs. Forstrong Global Income |
| Endeavour Silver vs. Solar Alliance Energy | Endeavour Silver vs. Global X Active | Endeavour Silver vs. Financial 15 Split | Endeavour Silver vs. Rubicon Organics |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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