Correlation Between Enduro Metals and Kodiak Copper

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

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

Diversification Opportunities for Enduro Metals and Kodiak Copper

-0.25

Correlation Coefficient

Enduro Metals  Kodiak Copper

Very good diversification

The 3 months correlation between Enduro and Kodiak is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Enduro Metals and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp and Enduro Metals 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 Enduro Metals are associated (or correlated) with Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Enduro Metals i.e., Enduro Metals and Kodiak Copper go up and down completely randomly.

Pair Corralation between Enduro Metals and Kodiak Copper

Assuming the 90 days horizon Enduro Metals is expected to under-perform the Kodiak Copper. But the otc stock apears to be less risky and, when comparing its historical volatility, Enduro Metals is 1.19 times less risky than Kodiak Copper. The otc stock trades about -0.11 of its potential returns per unit of risk. The Kodiak Copper Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Kodiak Copper Corp on December 4, 2024 and sell it today you would earn a total of  1.00  from holding Kodiak Copper Corp or generate 3.33% return on investment over 90 days.

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

Enduro Metals  vs.  Kodiak Copper Corp

Enduro Metals

Risk-Adjusted Performance

Very Weak

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

Kodiak Copper Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kodiak Copper Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Kodiak Copper may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Enduro Metals and Kodiak Copper

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

The idea behind Enduro Metals and Kodiak Copper 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.