Correlation Between Endeavour Silver and Black Mammoth

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

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

Diversification Opportunities for Endeavour Silver and Black Mammoth

0.38

Correlation Coefficient

Endeavour Silver  Black Mammoth

Weak diversification

The 3 months correlation between Endeavour and Black is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Black Mammoth Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Mammoth Metals and Endeavour Silver 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 Silver Corp are associated (or correlated) with Black Mammoth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Mammoth Metals has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Black Mammoth go up and down completely randomly.

Pair Corralation between Endeavour Silver and Black Mammoth

Assuming the 90 days trading horizon Endeavour Silver Corp is expected to generate 0.92 times more return on investment than Black Mammoth. However, Endeavour Silver Corp is 1.09 times less risky than Black Mammoth. It trades about 0.19 of its potential returns per unit of risk. Black Mammoth Metals is currently generating about 0.03 per unit of risk. If you would invest  523.00  in Endeavour Silver Corp on April 24, 2025 and sell it today you would earn a total of  262.00  from holding Endeavour Silver Corp or generate 50.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Endeavour Silver Corp  vs.  Black Mammoth Metals

Endeavour Silver Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Silver Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Endeavour Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

Black Mammoth Metals

Risk-Adjusted Performance

Weak

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

Pair Trading with Endeavour Silver and Black Mammoth

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

The idea behind Endeavour Silver Corp and Black Mammoth Metals 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.