Correlation Between Santacruz Silver and Endeavour Silver

Can any of the company-specific risk be diversified away by investing in both Santacruz Silver 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 Santacruz Silver and Endeavour Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Santacruz Silver Mining and Endeavour Silver Corp, you can compare the effects of market volatilities on Santacruz Silver 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 Santacruz Silver with a short position of Endeavour Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santacruz Silver and Endeavour Silver.

Diversification Opportunities for Santacruz Silver and Endeavour Silver

0.0

Correlation Coefficient

Santacruz Silver  Endeavour Silver

Pay attention - limited upside

The 3 months correlation between Santacruz and Endeavour is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santacruz Silver 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 Santacruz Silver 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 Santacruz Silver 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 Santacruz Silver i.e., Santacruz Silver and Endeavour Silver go up and down completely randomly.

Pair Corralation between Santacruz Silver and Endeavour Silver

If you would invest (100.00) in Santacruz Silver Mining on October 9, 2024 and sell it today you would earn a total of  100.00  from holding Santacruz Silver Mining or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Santacruz Silver Mining  vs.  Endeavour Silver Corp

Santacruz Silver Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Santacruz Silver Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Santacruz Silver is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Endeavour Silver Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Silver Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Endeavour Silver is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Santacruz Silver and Endeavour Silver

The main advantage of trading using opposite Santacruz Silver and Endeavour Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santacruz Silver 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.

The idea behind Santacruz Silver Mining and Endeavour Silver Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.