Correlation Between Endeavour Mining and Applied Materials
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Applied Materials 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 Applied Materials 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 Applied Materials, you can compare the effects of market volatilities on Endeavour Mining and Applied Materials 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 Applied Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Applied Materials.
Diversification Opportunities for Endeavour Mining and Applied Materials
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Endeavour and Applied is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials 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 Applied Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Applied Materials go up and down completely randomly.
Pair Corralation between Endeavour Mining and Applied Materials
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 2.86 times less return on investment than Applied Materials. But when comparing it to its historical volatility, Endeavour Mining PLC is 1.06 times less risky than Applied Materials. It trades about 0.07 of its potential returns per unit of risk. Applied Materials is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 12,509 in Applied Materials on April 23, 2025 and sell it today you would earn a total of 4,049 from holding Applied Materials or generate 32.37% 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. Applied Materials
Performance |
Timeline |
Endeavour Mining PLC |
Applied Materials |
Endeavour Mining and Applied Materials Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Endeavour Mining and Applied Materials
The main advantage of trading using opposite Endeavour Mining and Applied Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Applied Materials 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 Applied Materials will offset losses from the drop in Applied Materials' long position.Endeavour Mining vs. Agricultural Bank of | Endeavour Mining vs. G8 EDUCATION | Endeavour Mining vs. STRAYER EDUCATION | Endeavour Mining vs. AGRICULTBK HADR25 YC |
Applied Materials vs. Endeavour Mining PLC | Applied Materials vs. ANGLO ASIAN MINING | Applied Materials vs. Parkson Retail Group | Applied Materials vs. Eurasia Mining Plc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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