Correlation Between Endeavour Mining and AGNC INVESTMENT

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

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

Diversification Opportunities for Endeavour Mining and AGNC INVESTMENT

-0.07

Correlation Coefficient

Endeavour Mining  AGNC INVESTMENT

Good diversification

The 3 months correlation between Endeavour and AGNC is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and Endeavour 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 Endeavour Mining PLC are associated (or correlated) with AGNC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGNC INVESTMENT has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and AGNC INVESTMENT go up and down completely randomly.

Pair Corralation between Endeavour Mining and AGNC INVESTMENT

Assuming the 90 days trading horizon Endeavour Mining PLC is expected to under-perform the AGNC INVESTMENT. In addition to that, Endeavour Mining is 1.88 times more volatile than AGNC INVESTMENT. It trades about -0.01 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.08 per unit of volatility. If you would invest  900.00  in AGNC INVESTMENT on October 8, 2024 and sell it today you would earn a total of  12.00  from holding AGNC INVESTMENT or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Endeavour Mining PLC  vs.  AGNC INVESTMENT

Endeavour Mining PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Endeavour Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

AGNC INVESTMENT

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AGNC INVESTMENT are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AGNC INVESTMENT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Endeavour Mining and AGNC INVESTMENT

The main advantage of trading using opposite Endeavour Mining and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, AGNC INVESTMENT 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 AGNC INVESTMENT will offset losses from the drop in AGNC INVESTMENT's long position.

The idea behind Endeavour Mining PLC and AGNC INVESTMENT 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.