Correlation Between STGEORGE MINING and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and Endeavour Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and Endeavour Mining PLC, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and Endeavour Mining.
Diversification Opportunities for STGEORGE MINING and Endeavour Mining
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between STGEORGE and Endeavour is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and Endeavour Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining PLC and STGEORGE 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 STGEORGE MINING LTD 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 PLC has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and Endeavour Mining go up and down completely randomly.
Pair Corralation between STGEORGE MINING and Endeavour Mining
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 3.22 times more return on investment than Endeavour Mining. However, STGEORGE MINING is 3.22 times more volatile than Endeavour Mining PLC. It trades about 0.06 of its potential returns per unit of risk. Endeavour Mining PLC is currently generating about 0.17 per unit of risk. If you would invest 1.20 in STGEORGE MINING LTD on November 5, 2024 and sell it today you would earn a total of 0.05 from holding STGEORGE MINING LTD or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. Endeavour Mining PLC
Performance |
| Timeline |
| STGEORGE MINING LTD |
| Endeavour Mining PLC |
STGEORGE MINING and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and Endeavour Mining
The main advantage of trading using opposite STGEORGE MINING and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. Tyson Foods | STGEORGE MINING vs. MONEYSUPERMARKET | STGEORGE MINING vs. PATTIES FOODS | STGEORGE MINING vs. ATRESMEDIA |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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