Correlation Between Lendinvest PLC and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC 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 Lendinvest PLC and Endeavour Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and Endeavour Mining Corp, you can compare the effects of market volatilities on Lendinvest PLC 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 Lendinvest PLC with a short position of Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and Endeavour Mining.
Diversification Opportunities for Lendinvest PLC and Endeavour Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lendinvest and Endeavour is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC i.e., Lendinvest PLC and Endeavour Mining go up and down completely randomly.
Pair Corralation between Lendinvest PLC and Endeavour Mining
Assuming the 90 days trading horizon Lendinvest PLC is expected to under-perform the Endeavour Mining. In addition to that, Lendinvest PLC is 1.17 times more volatile than Endeavour Mining Corp. It trades about -0.06 of its total potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.01 per unit of volatility. If you would invest 154,657 in Endeavour Mining Corp on September 3, 2024 and sell it today you would lose (257.00) from holding Endeavour Mining Corp or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
Lendinvest PLC vs. Endeavour Mining Corp
Performance |
| Timeline |
| Lendinvest PLC |
| Endeavour Mining Corp |
Lendinvest PLC and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and Endeavour Mining
The main advantage of trading using opposite Lendinvest PLC and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC 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.| Lendinvest PLC vs. SupplyMe Capital PLC | Lendinvest PLC vs. 88 Energy | Lendinvest PLC vs. Vodafone Group PLC | Lendinvest PLC vs. Vodafone Group PLC |
| Endeavour Mining vs. Greenroc Mining PLC | Endeavour Mining vs. Zurich Insurance Group | Endeavour Mining vs. Lundin Mining Corp | Endeavour Mining vs. Central Asia 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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