Correlation Between Integra Resources and Endeavour Silver

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

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

Diversification Opportunities for Integra Resources and Endeavour Silver

0.76

Correlation Coefficient

Integra Resources  Endeavour Silver

Poor diversification

The 3 months correlation between Integra and Endeavour is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Endeavour Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Silver Corp and Integra Resources 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 Integra Resources Corp are associated (or correlated) with Endeavour Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Silver Corp has no effect on the direction of Integra Resources i.e., Integra Resources and Endeavour Silver go up and down completely randomly.

Pair Corralation between Integra Resources and Endeavour Silver

Given the investment horizon of 90 days Integra Resources is expected to generate 7.87 times less return on investment than Endeavour Silver. But when comparing it to its historical volatility, Integra Resources Corp is 1.2 times less risky than Endeavour Silver. It trades about 0.03 of its potential returns per unit of risk. Endeavour Silver Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  281.00  in Endeavour Silver Corp on September 2, 2024 and sell it today you would earn a total of  140.00  from holding Endeavour Silver Corp or generate 49.82% return on investment over 90 days.

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

Integra Resources Corp  vs.  Endeavour Silver Corp

Integra Resources Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integra Resources Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Integra Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Endeavour Silver Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Silver Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Endeavour Silver disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integra Resources and Endeavour Silver

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

The idea behind Integra Resources Corp and Endeavour Silver 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.