Correlation Between Endeavour Mining and Geratherm Medical
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Geratherm Medical 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 Geratherm Medical 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 Geratherm Medical AG, you can compare the effects of market volatilities on Endeavour Mining and Geratherm Medical 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 Geratherm Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Geratherm Medical.
Diversification Opportunities for Endeavour Mining and Geratherm Medical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Endeavour and Geratherm is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Geratherm Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geratherm Medical 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 Geratherm Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geratherm Medical has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Geratherm Medical go up and down completely randomly.
Pair Corralation between Endeavour Mining and Geratherm Medical
Assuming the 90 days trading horizon Endeavour Mining PLC is expected to generate 0.9 times more return on investment than Geratherm Medical. However, Endeavour Mining PLC is 1.11 times less risky than Geratherm Medical. It trades about 0.12 of its potential returns per unit of risk. Geratherm Medical AG is currently generating about 0.05 per unit of risk. If you would invest 2,310 in Endeavour Mining PLC on April 25, 2025 and sell it today you would earn a total of 410.00 from holding Endeavour Mining PLC or generate 17.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Endeavour Mining PLC vs. Geratherm Medical AG
Performance |
Timeline |
Endeavour Mining PLC |
Geratherm Medical |
Endeavour Mining and Geratherm Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Endeavour Mining and Geratherm Medical
The main advantage of trading using opposite Endeavour Mining and Geratherm Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Geratherm Medical 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 Geratherm Medical will offset losses from the drop in Geratherm Medical's long position.Endeavour Mining vs. Ryanair Holdings plc | Endeavour Mining vs. Suntory Beverage Food | Endeavour Mining vs. Norwegian Air Shuttle | Endeavour Mining vs. Delta Air Lines |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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