Correlation Between P2 Gold and Enduro Metals
Can any of the company-specific risk be diversified away by investing in both P2 Gold and Enduro Metals 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 P2 Gold and Enduro Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between P2 Gold and Enduro Metals, you can compare the effects of market volatilities on P2 Gold and Enduro Metals 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 P2 Gold with a short position of Enduro Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of P2 Gold and Enduro Metals.
Diversification Opportunities for P2 Gold and Enduro Metals
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between PGLDF and Enduro is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding P2 Gold and Enduro Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enduro Metals and P2 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 P2 Gold are associated (or correlated) with Enduro Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enduro Metals has no effect on the direction of P2 Gold i.e., P2 Gold and Enduro Metals go up and down completely randomly.
Pair Corralation between P2 Gold and Enduro Metals
Assuming the 90 days horizon P2 Gold is expected to generate 1.13 times more return on investment than Enduro Metals. However, P2 Gold is 1.13 times more volatile than Enduro Metals. It trades about -0.03 of its potential returns per unit of risk. Enduro Metals is currently generating about -0.05 per unit of risk. If you would invest 8.90 in P2 Gold on September 1, 2024 and sell it today you would lose (3.80) from holding P2 Gold or give up 42.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
P2 Gold vs. Enduro Metals
Performance |
| Timeline |
| P2 Gold |
| Enduro Metals |
P2 Gold and Enduro Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with P2 Gold and Enduro Metals
The main advantage of trading using opposite P2 Gold and Enduro Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if P2 Gold position performs unexpectedly, Enduro Metals 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 Enduro Metals will offset losses from the drop in Enduro Metals' long position.| P2 Gold vs. Max Resource Corp | P2 Gold vs. Western Alaska Minerals | P2 Gold vs. CMC Metals | P2 Gold vs. Summa Silver Corp |
| Enduro Metals vs. Summa Silver Corp | Enduro Metals vs. P2 Gold | Enduro Metals vs. Kodiak Copper Corp | Enduro Metals vs. Mirasol Resources |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |