Correlation Between Endeavour Silver and MAG Silver
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and MAG Silver 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 MAG Silver 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 MAG Silver Corp, you can compare the effects of market volatilities on Endeavour Silver and MAG Silver 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 MAG Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and MAG Silver.
Diversification Opportunities for Endeavour Silver and MAG Silver
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Endeavour and MAG is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and MAG Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Silver Corp 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 MAG Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Silver Corp has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and MAG Silver go up and down completely randomly.
Pair Corralation between Endeavour Silver and MAG Silver
Assuming the 90 days trading horizon Endeavour Silver is expected to generate 3.58 times less return on investment than MAG Silver. In addition to that, Endeavour Silver is 1.48 times more volatile than MAG Silver Corp. It trades about 0.03 of its total potential returns per unit of risk. MAG Silver Corp is currently generating about 0.13 per unit of volatility. If you would invest 2,157 in MAG Silver Corp on April 10, 2025 and sell it today you would earn a total of 740.00 from holding MAG Silver Corp or generate 34.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Endeavour Silver Corp vs. MAG Silver Corp
Performance |
Timeline |
Endeavour Silver Corp |
MAG Silver Corp |
Endeavour Silver and MAG Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Endeavour Silver and MAG Silver
The main advantage of trading using opposite Endeavour Silver and MAG Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, MAG Silver 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 MAG Silver will offset losses from the drop in MAG Silver's long position.Endeavour Silver vs. High Liner Foods | Endeavour Silver vs. Titanium Transportation Group | Endeavour Silver vs. Andean Precious Metals | Endeavour Silver vs. Precious Metals And |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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