Correlation Between Endeavour Mining and SSR Mining

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Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and SSR 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 Endeavour Mining and SSR Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Mining Corp and SSR Mining, you can compare the effects of market volatilities on Endeavour Mining and SSR 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 Endeavour Mining with a short position of SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and SSR Mining.

Diversification Opportunities for Endeavour Mining and SSR Mining

EndeavourSSRDiversified AwayEndeavourSSRDiversified Away100%
0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between Endeavour and SSR is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 Corp are associated (or correlated) with SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and SSR Mining go up and down completely randomly.

Pair Corralation between Endeavour Mining and SSR Mining

Assuming the 90 days trading horizon Endeavour Mining is expected to generate 3.82 times less return on investment than SSR Mining. But when comparing it to its historical volatility, Endeavour Mining Corp is 1.89 times less risky than SSR Mining. It trades about 0.15 of its potential returns per unit of risk. SSR Mining is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  803.00  in SSR Mining on November 23, 2024 and sell it today you would earn a total of  684.00  from holding SSR Mining or generate 85.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Endeavour Mining Corp  vs.  SSR Mining

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 010203040506070
JavaScript chart by amCharts 3.21.15EDV SSRM
       Timeline  
Endeavour Mining Corp 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Mining Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Endeavour Mining displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2526272829303132
SSR Mining 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb89101112131415

Endeavour Mining and SSR Mining Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.16-4.62-3.07-1.520.01.583.254.926.598.25 0.020.040.060.08
JavaScript chart by amCharts 3.21.15EDV SSRM
       Returns  

Pair Trading with Endeavour Mining and SSR Mining

The main advantage of trading using opposite Endeavour Mining and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, SSR 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 SSR Mining will offset losses from the drop in SSR Mining's long position.
The idea behind Endeavour Mining Corp and SSR Mining 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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