Correlation Between Hummingbird Resources and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both Hummingbird Resources and Endurance 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 Hummingbird Resources and Endurance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hummingbird Resources PLC and Endurance Gold, you can compare the effects of market volatilities on Hummingbird Resources and Endurance 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 Hummingbird Resources with a short position of Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and Endurance Gold.
Diversification Opportunities for Hummingbird Resources and Endurance Gold
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hummingbird and Endurance is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold and Hummingbird 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 Hummingbird Resources PLC are associated (or correlated) with Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold has no effect on the direction of Hummingbird Resources i.e., Hummingbird Resources and Endurance Gold go up and down completely randomly.
Pair Corralation between Hummingbird Resources and Endurance Gold
Assuming the 90 days horizon Hummingbird Resources PLC is expected to generate 5.96 times more return on investment than Endurance Gold. However, Hummingbird Resources is 5.96 times more volatile than Endurance Gold. It trades about 0.15 of its potential returns per unit of risk. Endurance Gold is currently generating about 0.01 per unit of risk. If you would invest 2.00 in Hummingbird Resources PLC on November 3, 2024 and sell it today you would earn a total of 1.20 from holding Hummingbird Resources PLC or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. Endurance Gold
Performance |
| Timeline |
| Hummingbird Resources PLC |
| Endurance Gold |
Hummingbird Resources and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and Endurance Gold
The main advantage of trading using opposite Hummingbird Resources and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird Resources position performs unexpectedly, Endurance 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.| Hummingbird Resources vs. Fremont Gold | Hummingbird Resources vs. Norsemont Mining | Hummingbird Resources vs. Tudor Gold Corp | Hummingbird Resources vs. Japan Gold Corp |
| Endurance Gold vs. Red Pine Exploration | Endurance Gold vs. Altamira Gold Corp | Endurance Gold vs. Grande Portage Resources | Endurance Gold vs. Tectonic Metals |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |