Correlation Between Endeavour Mining and Mid-America Apartment

Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Mid-America Apartment 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 Mid-America Apartment 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 Mid America Apartment Communities, you can compare the effects of market volatilities on Endeavour Mining and Mid-America Apartment 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 Mid-America Apartment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Mid-America Apartment.

Diversification Opportunities for Endeavour Mining and Mid-America Apartment

-0.32

Correlation Coefficient

Endeavour Mining  Mid-America Apartment

Very good diversification

The 3 months correlation between Endeavour and Mid-America is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining PLC and Mid America Apartment Communit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid America Apartment 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 Mid-America Apartment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid America Apartment has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Mid-America Apartment go up and down completely randomly.

Pair Corralation between Endeavour Mining and Mid-America Apartment

Assuming the 90 days trading horizon Endeavour Mining PLC is expected to generate 1.89 times more return on investment than Mid-America Apartment. However, Endeavour Mining is 1.89 times more volatile than Mid America Apartment Communities. It trades about 0.07 of its potential returns per unit of risk. Mid America Apartment Communities is currently generating about -0.1 per unit of risk. If you would invest  2,380  in Endeavour Mining PLC on April 23, 2025 and sell it today you would earn a total of  218.00  from holding Endeavour Mining PLC or generate 9.16% return on investment over 90 days.

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

Endeavour Mining PLC  vs.  Mid America Apartment Communit

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.

Mid America Apartment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mid America Apartment Communities has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Endeavour Mining and Mid-America Apartment

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

The idea behind Endeavour Mining PLC and Mid America Apartment Communities 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.