Correlation Between Santacruz Silv and Enduro Metals

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

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

Diversification Opportunities for Santacruz Silv and Enduro Metals

-0.49

Correlation Coefficient

Santacruz Silv  Enduro Metals

Very good diversification

The 3 months correlation between Santacruz and Enduro is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Santacruz Silv and Enduro Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enduro Metals Corp and Santacruz Silv 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 Santacruz Silv are associated (or correlated) with Enduro Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enduro Metals Corp has no effect on the direction of Santacruz Silv i.e., Santacruz Silv and Enduro Metals go up and down completely randomly.

Pair Corralation between Santacruz Silv and Enduro Metals

Assuming the 90 days horizon Santacruz Silv is expected to generate 0.87 times more return on investment than Enduro Metals. However, Santacruz Silv is 1.15 times less risky than Enduro Metals. It trades about 0.23 of its potential returns per unit of risk. Enduro Metals Corp is currently generating about 0.03 per unit of risk. If you would invest  27.00  in Santacruz Silv on December 30, 2024 and sell it today you would earn a total of  25.00  from holding Santacruz Silv or generate 92.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Santacruz Silv  vs.  Enduro Metals Corp

Santacruz Silv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Santacruz Silv are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Santacruz Silv showed solid returns over the last few months and may actually be approaching a breakup point.

Enduro Metals Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enduro Metals Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Enduro Metals may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Santacruz Silv and Enduro Metals

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

The idea behind Santacruz Silv and Enduro Metals 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.