Correlation Between Endeavour Mining and Genertec Universal

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

By analyzing existing cross correlation between Endeavour Mining PLC and Genertec Universal Medical, you can compare the effects of market volatilities on Endeavour Mining and Genertec Universal 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 Genertec Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Genertec Universal.

Diversification Opportunities for Endeavour Mining and Genertec Universal

0.1

Correlation Coefficient

Endeavour Mining  Genertec Universal

Average diversification

The 3 months correlation between Endeavour and Genertec is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Genertec Universal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genertec Universal 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 PLC are associated (or correlated) with Genertec Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genertec Universal has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Genertec Universal go up and down completely randomly.

Pair Corralation between Endeavour Mining and Genertec Universal

Assuming the 90 days trading horizon Endeavour Mining is expected to generate 2.76 times less return on investment than Genertec Universal. In addition to that, Endeavour Mining is 1.22 times more volatile than Genertec Universal Medical. It trades about 0.07 of its total potential returns per unit of risk. Genertec Universal Medical is currently generating about 0.24 per unit of volatility. If you would invest  50.00  in Genertec Universal Medical on April 23, 2025 and sell it today you would earn a total of  16.00  from holding Genertec Universal Medical or generate 32.0% return on investment over 90 days.

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

Endeavour Mining PLC  vs.  Genertec Universal Medical

Endeavour Mining PLC

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Mining PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Endeavour Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Genertec Universal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Genertec Universal Medical are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genertec Universal reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Endeavour Mining and Genertec Universal

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

The idea behind Endeavour Mining PLC and Genertec Universal Medical 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.

Check out your portfolio center.

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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.