Correlation Between Endeavour Silver and Flinders Resources

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

Diversification Opportunities for Endeavour Silver and Flinders Resources

-0.6

Correlation Coefficient

Endeavour Silver  Flinders Resources

Excellent diversification

The 3 months correlation between Endeavour and Flinders is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Flinders Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flinders Resources 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 Flinders Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flinders Resources has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Flinders Resources go up and down completely randomly.

Pair Corralation between Endeavour Silver and Flinders Resources

Assuming the 90 days trading horizon Endeavour Silver Corp is expected to generate 0.85 times more return on investment than Flinders Resources. However, Endeavour Silver Corp is 1.18 times less risky than Flinders Resources. It trades about 0.18 of its potential returns per unit of risk. Flinders Resources Limited is currently generating about -0.08 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  249.00  from holding Endeavour Silver Corp or generate 47.61% return on investment over 90 days.

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

Endeavour Silver Corp  vs.  Flinders Resources Limited

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.

Flinders Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flinders Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Endeavour Silver and Flinders Resources

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

The idea behind Endeavour Silver Corp and Flinders Resources Limited 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.