Correlation Between Endurance Gold and Dynasty Gold

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

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

Diversification Opportunities for Endurance Gold and Dynasty Gold

0.13

Correlation Coefficient

Endurance Gold  Dynasty Gold

Average diversification

The 3 months correlation between Endurance and Dynasty is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold Corp and Dynasty Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynasty Gold Corp and Endurance 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 Endurance Gold Corp are associated (or correlated) with Dynasty Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynasty Gold Corp has no effect on the direction of Endurance Gold i.e., Endurance Gold and Dynasty Gold go up and down completely randomly.

Pair Corralation between Endurance Gold and Dynasty Gold

Assuming the 90 days horizon Endurance Gold is expected to generate 2.27 times less return on investment than Dynasty Gold. In addition to that, Endurance Gold is 1.1 times more volatile than Dynasty Gold Corp. It trades about 0.02 of its total potential returns per unit of risk. Dynasty Gold Corp is currently generating about 0.05 per unit of volatility. If you would invest  13.00  in Dynasty Gold Corp on December 30, 2024 and sell it today you would earn a total of  1.00  from holding Dynasty Gold Corp or generate 7.69% return on investment over 90 days.

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

Endurance Gold Corp  vs.  Dynasty Gold Corp

Endurance Gold Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Endurance Gold Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Endurance Gold is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Dynasty Gold Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dynasty Gold Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Dynasty Gold may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Endurance Gold and Dynasty Gold

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

The idea behind Endurance Gold Corp and Dynasty Gold 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.