Correlation Between McEwen Mining and Endeavour Silver
Can any of the company-specific risk be diversified away by investing in both McEwen Mining 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 McEwen Mining and Endeavour Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Endeavour Silver Corp, you can compare the effects of market volatilities on McEwen Mining 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 McEwen Mining with a short position of Endeavour Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Endeavour Silver.
Diversification Opportunities for McEwen Mining and Endeavour Silver
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and Endeavour is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining 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 McEwen Mining 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 McEwen Mining 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 McEwen Mining i.e., McEwen Mining and Endeavour Silver go up and down completely randomly.
Pair Corralation between McEwen Mining and Endeavour Silver
Considering the 90-day investment horizon McEwen Mining is expected to generate 0.77 times more return on investment than Endeavour Silver. However, McEwen Mining is 1.3 times less risky than Endeavour Silver. It trades about -0.38 of its potential returns per unit of risk. Endeavour Silver Corp is currently generating about -0.3 per unit of risk. If you would invest 1,030 in McEwen Mining on August 27, 2024 and sell it today you would lose (209.00) from holding McEwen Mining or give up 20.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Endeavour Silver Corp
Performance |
| Timeline |
| McEwen Mining |
| Endeavour Silver Corp |
McEwen Mining and Endeavour Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Endeavour Silver
The main advantage of trading using opposite McEwen Mining and Endeavour Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining 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.| McEwen Mining vs. Gold Royalty Corp | McEwen Mining vs. SilverCrest Metals | McEwen Mining vs. Hecla Mining | McEwen Mining vs. Avino Silver Gold |
| Endeavour Silver vs. McEwen Mining | Endeavour Silver vs. SilverCrest Metals | Endeavour Silver vs. Avino Silver Gold | Endeavour Silver vs. Compania de Minas |
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.
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