Correlation Between Lavras Gold and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both Lavras Gold 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 Lavras Gold and Endurance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lavras Gold Corp and Endurance Gold, you can compare the effects of market volatilities on Lavras Gold 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 Lavras Gold with a short position of Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lavras Gold and Endurance Gold.
Diversification Opportunities for Lavras Gold and Endurance Gold
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lavras and Endurance is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lavras Gold Corp and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold and Lavras Gold 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 Lavras Gold Corp 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 Lavras Gold i.e., Lavras Gold and Endurance Gold go up and down completely randomly.
Pair Corralation between Lavras Gold and Endurance Gold
If you would invest 167.00 in Lavras Gold Corp on November 3, 2024 and sell it today you would earn a total of 3.00 from holding Lavras Gold Corp or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lavras Gold Corp vs. Endurance Gold
Performance |
| Timeline |
| Lavras Gold Corp |
| Endurance Gold |
Lavras Gold and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lavras Gold and Endurance Gold
The main advantage of trading using opposite Lavras Gold and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lavras Gold 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.| Lavras Gold vs. TRU Precious Metals | Lavras Gold vs. Orefinders Resources | Lavras Gold vs. North Peak Resources | Lavras Gold vs. Nine Mile Metals |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |