Correlation Between OceanaGold and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both OceanaGold 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 OceanaGold and Endeavour Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OceanaGold and Endeavour Mining Corp, you can compare the effects of market volatilities on OceanaGold 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 OceanaGold with a short position of Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of OceanaGold and Endeavour Mining.
Diversification Opportunities for OceanaGold and Endeavour Mining
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OceanaGold and Endeavour is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding OceanaGold 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 OceanaGold 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 OceanaGold 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 OceanaGold i.e., OceanaGold and Endeavour Mining go up and down completely randomly.
Pair Corralation between OceanaGold and Endeavour Mining
Assuming the 90 days trading horizon OceanaGold is expected to under-perform the Endeavour Mining. In addition to that, OceanaGold is 1.16 times more volatile than Endeavour Mining Corp. It trades about -0.11 of its total potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.22 per unit of volatility. If you would invest 2,758 in Endeavour Mining Corp on November 27, 2024 and sell it today you would earn a total of 287.00 from holding Endeavour Mining Corp or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OceanaGold vs. Endeavour Mining Corp
Performance |
| Timeline |
| OceanaGold |
| Endeavour Mining Corp |
OceanaGold and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OceanaGold and Endeavour Mining
The main advantage of trading using opposite OceanaGold and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OceanaGold 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.| OceanaGold vs. Torex Gold Resources | OceanaGold vs. Wesdome Gold Mines | OceanaGold vs. Centerra Gold | OceanaGold vs. New Gold |
| Endeavour Mining vs. SSR Mining | Endeavour Mining vs. Centerra Gold | Endeavour Mining vs. Alamos Gold | Endeavour Mining vs. Osisko Gold Ro |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |