Correlation Between InterContinental and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both InterContinental and Endeavour Mining 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 InterContinental and Endeavour Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InterContinental Hotels Group and Endeavour Mining Corp, you can compare the effects of market volatilities on InterContinental and Endeavour Mining 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 InterContinental with a short position of Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of InterContinental and Endeavour Mining.
Diversification Opportunities for InterContinental and Endeavour Mining
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InterContinental and Endeavour is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding InterContinental Hotels Group and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining Corp and InterContinental 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 InterContinental Hotels Group are associated (or correlated) with Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of InterContinental i.e., InterContinental and Endeavour Mining go up and down completely randomly.
Pair Corralation between InterContinental and Endeavour Mining
Assuming the 90 days trading horizon InterContinental Hotels Group is expected to generate 0.5 times more return on investment than Endeavour Mining. However, InterContinental Hotels Group is 2.01 times less risky than Endeavour Mining. It trades about 0.15 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.0 per unit of risk. If you would invest 789,794 in InterContinental Hotels Group on September 2, 2024 and sell it today you would earn a total of 190,206 from holding InterContinental Hotels Group or generate 24.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InterContinental Hotels Group vs. Endeavour Mining Corp
Performance |
| Timeline |
| InterContinental Hotels |
| Endeavour Mining Corp |
InterContinental and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InterContinental and Endeavour Mining
The main advantage of trading using opposite InterContinental and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InterContinental position performs unexpectedly, Endeavour Mining 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 Mining will offset losses from the drop in Endeavour Mining's long position.| InterContinental vs. Sligro Food Group | InterContinental vs. Hilton Food Group | InterContinental vs. Leroy Seafood Group | InterContinental vs. Summit Materials Cl |
| Endeavour Mining vs. Everyman Media Group | Endeavour Mining vs. Schweiter Technologies AG | Endeavour Mining vs. XLMedia PLC | Endeavour Mining vs. PureTech Health plc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |