Correlation Between Endeavour Mining and Acadia Realty

Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Acadia Realty 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 Acadia Realty 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 Acadia Realty Trust, you can compare the effects of market volatilities on Endeavour Mining and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Acadia Realty.

Diversification Opportunities for Endeavour Mining and Acadia Realty

-0.66

Correlation Coefficient

Endeavour Mining  Acadia Realty

Excellent diversification

The 3 months correlation between Endeavour and Acadia is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Acadia Realty go up and down completely randomly.

Pair Corralation between Endeavour Mining and Acadia Realty

Assuming the 90 days trading horizon Endeavour Mining PLC is expected to under-perform the Acadia Realty. In addition to that, Endeavour Mining is 1.76 times more volatile than Acadia Realty Trust. It trades about -0.01 of its total potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.18 per unit of volatility. If you would invest  1,536  in Acadia Realty Trust on October 9, 2024 and sell it today you would earn a total of  704.00  from holding Acadia Realty Trust or generate 45.83% return on investment over 90 days.

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

Endeavour Mining PLC  vs.  Acadia Realty Trust

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 uncertain 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.

Acadia Realty Trust

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Acadia Realty Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Acadia Realty may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Endeavour Mining and Acadia Realty

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

The idea behind Endeavour Mining PLC and Acadia Realty Trust 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.